Foreign Currency Exchangeable Bonds allowed with RBI approval, prescribed pricing, five year minimum maturity and restricted end uses. The scheme permits Indian issuing companies within a promoter group to issue Foreign Currency Exchangeable Bonds to non residents exchangeable into shares of a listed offered company eligible for FDI; prior RBI approval is required, pricing must meet specified average market price tests, minimum five year maturity applies, exchange requires delivery of shares (no cash settlement), proceeds are restricted by ECB end use rules and outbound investment guidelines, corporate and SEBI approvals and disclosure obligations must be satisfied, and specified Indian tax withholding and non recognition rules apply to exchange and transfers between non resident holders.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Foreign Currency Exchangeable Bonds allowed with RBI approval, prescribed pricing, five year minimum maturity and restricted end uses.
The scheme permits Indian issuing companies within a promoter group to issue Foreign Currency Exchangeable Bonds to non residents exchangeable into shares of a listed offered company eligible for FDI; prior RBI approval is required, pricing must meet specified average market price tests, minimum five year maturity applies, exchange requires delivery of shares (no cash settlement), proceeds are restricted by ECB end use rules and outbound investment guidelines, corporate and SEBI approvals and disclosure obligations must be satisfied, and specified Indian tax withholding and non recognition rules apply to exchange and transfers between non resident holders.
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