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Conversion of External Commercial Borrowing and Lumpsum Fee/Royalty into Equity
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....Series) Circular No. 15 dated October 1, 2004 on the captioned subject. 2. In terms of the said circular, an Indian company can issue equity shares against External Commercial Borrowings (ECB) subject to conditions mentioned therein and pricing guidelines as prescribed by the Reserve Bank from time to time regarding value of equity shares to be issued. Reserve Bank has received some references re....
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....e equity shares to be issued shall be worked out with reference to the date of conversion only. 4. It is further clarified that the principle of calculation of INR equivalent for a liability denominated in foreign currency as mentioned at paragraph 3 above shall apply, mutatis mutandis, to all cases where any payables/liability by an Indian company such as, lump sum fees/royalties, etc. are permi....