Indian companies can issue equity shares, fully, compulsorily and mandatorily convertible debentures and fully, compulsorily and mandatorily convertible preference shares subject to pricing guidelines/valuation norms prescribed under Foreign Exchange Management (Transfer or Issue of Security to a Person Resident outside India) Regulations, 2000 (“FEMA Regulations”). Thus, one of the important factors with respect to any foreign direct investment in India is the pricing norm applicable to the instrument used whilst making the investment.
RBI’S Revised Pricing Norms
Updated: Jan 18, 2022
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