ANNOUNCEMENT 06 Jan 2014In January 2014, the government of India announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
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.