Amendment to FDI Policy Oct 31, 2011 (Nov 01, 2011)

Para 3.3.2.1 of the FDI Policy has been deleted from FDI Policy.

Text of Para 3.3.2.1 of the FDI Policy:

Only equity shares, fully, compulsorily and mandatorily convertible debentures and fully, compulsorily and mandatorily convertible preference shares, with no in-built options of any type, would qualify as eligible instruments for FDI.

Equity instruments issued/transferred to non-residents having in-built options or supported by options sold by third parties would lose their equity character and such instruments would have to comply with the extant ECB guidelines.

Note: The Reserve Bank of India is yet to issue necessary Notification.

Amendment to FDI Policy Oct 31, 2011 (Nov 01, 2011)

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