IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 Jan 2014 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 6 January 2014, the Reserve Bank of India (RBI) amended a rule allowing the issue of non-convertible/redeemable preference shares or debentures by Indian companies from their general reserve account to non-resident shareholders.
With the amendment, the RBI has allowed free issue of such shares/debentures from the general reserve to non-resident shareholders as well as to depositeries who act as trustees for the American Depository Receipts or Global Depository Receipt holders. 
Prior to the change, the RBI had allowed the use of this scheme on a case-by-case basis.

AFFECTED COUNTRIES

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