ANNOUNCEMENT 09 Jan 2014In January 2014, the government of India announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
On 9 January 2014, the Reserve Bank of India (RBI) amended the regulations for issue or transfer of a security by a person resident outside India. With the new amendment, an "optionality clause" is allowed to be included in the shares/debentures issued to such a person. It may be noted that only equity shares or compulsorily and mandatorily convertible preference shares/debentures are elgible to be issued to persons resident outside India under the FDI policy.
Conditions under the new clause: