Foreign investment conversion rules permit equity issuance for royalty or ECB conversion, subject to pricing and sectoral caps. Amendments allow Indian companies eligible under the Schedule to issue equity/preference shares to non-residents in consideration for conversion of royalty/lumpsum fees or conversion of ECB, subject to pricing guidelines and sectoral foreign equity caps. Conversion of royalty/lumpsum fee or ECB is expressly treated as consideration for issue of shares, and acquisitions beyond sectoral limits include such conversions. Reporting requirements mandate ECB-2 for full conversions and Form FC-GPR for converted portions with ECB-2 for non-converted portions.