TaxTMI 
TaxTMI 
Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2022
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....hey shall come into force on the date of their publication in the Official Gazette. 2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (hereinafter referred to as the said rules), in rule 2,- (i) in clause (e), for the words "five years", the words "ten years" shall be substituted ; (ii) in clause (k), in the Explanation, for clause (i), the following clause shall be substituted, namely:- "(i) Equity shares issued by an Indian Company in accordance with the provisions of the Companies Act, 2013 or any other applicable law, shall include equity shares that have been partly paid. "Convertible debentures" means fully and mandatorily convertible debentures which are fully paid. "Preference shares" means fully and ma....
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....) It is further clarified that if the term 'Company ' or 'Indian company' or 'Investee company' or 'transferee company' or 'transferor company' is qualified by a reference to a company incorporated under the Companies Act, 2013 such term shall mean a company incorporated under the said Act but not a body corporate. (iii) It is also clarified that 'Indian company' does not include a society, trust or any entity, which is excluded as an eligible investee entity under the FDI Policy."; (v) after clause (am), the following clause shall be inserted, namely :- "(ama) "Share Based Employee Benefits" means issue of equity instruments to employees or directors or employees or directors of the hol....
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....n a company where foreign investment is under the approval route shall require prior government approval; (d) issue of "employee's stock option" or "sweat equity shares" or "Share Based Employee Benefits" to a citizen of Bangladesh or Pakistan shall require prior government approval : Provided further that an individual who is a person resident outside India exercising an option which was issued when he or she was a person resident in India shall hold the shares so acquired on exercising the option on a non-repatriation basis.". 4. In the said rules, in rule 19, (i) for sub-rule (1), the following sub-rule shall be substituted, namely:- " (1) Where a scheme of compromise or arrangement or merger or amalgamation of two or more India....
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....tion, the following Explanation shall be substituted, namely:- "Explanation: For the purpose of this rule, 'real estate business' means dealing in land and immovable property with a view to earning profit from there and does not include development of townships, construction of residential or commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure, townships, real estate broking services and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014 and earning of rent or income on lease of the property, not amounting to transfer.; (ii) in the Table,- (a) under the heading Insurance, (A) after Sl. No. F.8.1, t....