Business - Briefly   

FDI policy on debentures

MUMBAI: The Reserve Bank of India, in a notification, on Friday clarified that henceforth only instruments which are fully and mandatorily convertible into equity, within a specified time, will be reckoned as part of equity under the FDI policy and eligible to be issued to persons residing outside India.

The RBI has issued the clarification to prevent corporate from circumventing the provisions of the FDI policy by issuing hybrid instruments like optionally convertible or partially convertible debentures, which are intrinsically debt-instruments.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Rupee futures cross $23 m on Dubai Exchange
Getting the most out of finishing schools
Panel report on gas pricing
IBM launches `Project Green'
Inflation dips below 5 p.c.
EU offers big scope for biopharma cos.
Further drop in Sensex
Exchange rates
Bullion rates
FDI policy on debentures
Activity-wise data collection
IDBI plans to raise $1.5 b
Biocon signs MoU with Deakin University
Easun Reyrolle's net up 35 p.c.
ED appointments in public sector banks
Sical Logistics wins O&M contract from ONGC
Mayfield Fund expands India operations

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu