ANNOUNCEMENT 27 Sep 2013In September 2013, the government of India announced a rule change for international private debt transactions.
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On 27 September 2013, the Indian Ministry of Finance amended regulations making it easier for unlisted Indian companies to raise capital abroad. Before the amendment, unlisted companies in India were not allowed to list bonds on overseas exchanges without a prior or simultaneous listing on an Indian exchange. This requirement has been lifted and unlisted Indian companies can raise foreign funds by issuing "Global Depository Recepits/Foreign Currency Covertible Bonds", subject to limits of FDI in the concerned sector.
The scheme will be effective for two years from the date of notification, after which its impact will be studied for further extensions.