TaxTMI 
TaxTMI 
Foreign Exchange Management (Nondebt Instruments) Amendment Rules, 2024
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....1) These rules may be called the Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2024. (2) They 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 principal rules), in rule 2- (i) after clause (aa), the following clause shall be inserted, namely:- '(aaa) "International Exchange" shall mean permitted stock exchange in permissible jurisdictions which are listed at Schedule XI annexed to these rules;'; (ii) for clause (ag), the following clause shall be substituted, namely:- '(ag) "listed Indian company" means an Indian company which has any of its equity in....
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....tional Exchanges Scheme 1. Issue and Listing on International Exchanges .- A public Indian company may issue equity shares or offer equity shares of existing shareholders, subject to the following conditions, namely:- (i) such issue or offer of equity shares of existing shareholders shall be permitted and such shares shall be listed on any of the specified International Exchange. (ii) such issue or offer of equity shares of existing shareholders shall be subject to prohibited activities, and sectoral caps prescribed in paragraph 2 and 3 of Schedule I to these rules; (iii) such equity shares to be issued by the public Indian company or offered by its existing shareholders on an Internat....
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.... existing shareholders may offer equity shares in such exchange, subject to compliance with the following conditions and other requirements as laid down in this Scheme: (i) a public Indian company shall be eligible to issue equity shares in permissible jurisdiction, if- (a) the public Indian company, any of its promoters, promoter group or directors or selling shareholders are not debarred from accessing the capital market by the appropriate regulator; (b) none of the promoters or directors of the public Indian company is a promoter or director of any other Indian company which is debarred from accessing the capital market by the appropriate regulator; (c) the public Indian company or a....
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....ange Board of India from time to time. (3) (I) a public unlisted Indian company may issue equity shares on International Exchange; or (II) the existing share holders may offer equity shares in such exchange, subject to compliance with the conditions and other requirements as per the norms notified by the Ministry of Corporate Affairs from time to time. Explanation.-The restrictions mentioned at items (a) and (b) of sub-clause (i) of clauses (I) and (II) of sub-paragraph (1) of paragraph 3 and items (a) and (b) of sub-clause (ii) of clauses (I) and (II) of sub-paragraph (1) of paragraph 3 shall not apply to the persons or entities mentioned therein, who were debarred in the past by the ....
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....ustodian pursuant to voting instruction only from such permissible holder. 6. Pricing .- (1) Where equity shares are issued by a listed company or offered by the existing shareholders of equity shares listed on Recognised Stock Exchange in India, the same shall be issued at a price, not less than the price applicable to a corresponding mode of issuance of such equity shares to domestic investors under the applicable laws. (2) In case of initial listing of equity shares by a public unlisted Indian company on the International Exchange, the price of issue or transfer of equity shares shall be determined by a book- building process as permitted by the said International Exchange and shall not be less ....
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....tion 2 of the Fugitive Economic Offenders Act, 2018 (17 of 2018); (e) "Indian depository" means a depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); (f) "offer by existing holders of equity shares" means offer of existing equity shares of the company pursuant to formal agreement among the company, the Indian Depository and the Foreign epository; (g) "offer document" means a prospectus, red herring prospectus, or shelf prospectus, as applicable, as referred to in clause (70) of section 2 of the Companies Act, 2013 (18 of 2013), in case of a public issue, and a letter of offer in case of a rights issue; (h) "wilful defaulter" m....