Master Direction – Foreign Investment in India Flashcards

1
Q

The FEMA, 1999 empowers the Central Government to prescribe, in consultation with the RBI, rules pertaining ……………………………………….

A

to capital account transactions, not involving debt instruments.

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2
Q

Foreign Portfolio Investment is any investment made by a person resident outside India in equity instruments where such investment is ………………………………………………………

A

(a) less than 10 percent of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company or (b) less than 10 percent of the paid-up value of each series of equity instruments of a listed Indian company.

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3
Q

……………………….is any investment made by a person resident outside India on a repatriable basis in equity instruments of an Indian company or to the capital of an LLP

A

Foreign Investment

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4
Q

Partly paid shares that have been issued to a person resident outside India should be fully called-up within ………… months of such issue. ….% of the total consideration amount has to be received upfront, However, if investee company has appointed monitoring agency than the amount can be received beyond ……. months also.

A

Twelve, 25, Twelve

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5
Q

Debentures/ Preference Shares which …… ,……… and …………. are are treated as equity instruments.

A

fully, compulsorily and mandatorily convertible

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6
Q

Convertible notes as an investment option was permitted for startup companies. They can convert it to equity or repay within …………… from the date of issue

A

5 years

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7
Q

A person resident outside india (except citizen of Pakistan or Bangladesh) can invest in convertible notes issued by an Indian startup company for an amount of ……………………….in a single tranche

A

twenty five lakh rupees or more

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8
Q

The total holding by each FPI or an investor group as referred in SEBI (FPI) Regulations, 2014, should be less than …… per cent of the total paid-up equity capital on a fully diluted basis or the paid-up value of each series of debentures or preference shares or warrants

A

10

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9
Q

The total holdings of all FPIs put together should not exceed ….. per cent of paid-up equity capital on a fully diluted basis or paid up value of each series of debentures or preference shares or warrants.

A

24

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10
Q

the total holdings on repatriation basis by any individual NRI or OCI should not exceed ……… per cent of paid-up equity capital on a fully diluted basis or paid up value of each series of debentures or preference shares or warrants. if the limit is exceeded then?

A
  1. if they exceed the limit than they have to sell the excess within 5 trading days after the settlement to a resident Indian.
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11
Q

The total holdings on repatriation basis of all NRIs and OCIs put together should not exceed ….. per cent of paid-up equity capital on a fully diluted basis or paid up value of each series of debentures or preference shares or warrants. However, the aggregate ceiling can be raised to ………. per cent if a special resolution to that effect is passed by the General Body of the Indian company

A

10, 24

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12
Q

Issue of Indian Depository Receipts (IDRs) – There would be an overall cap of ……………….. for raising of capital by issuance of IDRs by eligible foreign companies in Indian markets. This limit would be monitored by ……….

A

USD 5 billion, SEBI

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13
Q

……………………………… is defined in SEBI circular dated the 9th October 2018.

A

“Eligible Foreign Entity (EEE)”

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14
Q

Transfer by way of gift by an NRI/ OCI holding securities on a non-repatriable basis or a resident to a person resident outside India is possible?

A

Yes, Gifting limit is upto 5% of paid up capital or 50,000 USD per financial year, RBI permission and sectoral cap needs to be taken.

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15
Q

what is the limit for Investments by Non-Resident Indian (NRI) or Overseas Citizen of India (OCI) on non-repatriation basis

A

don’t have any limits

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16
Q

Validity of Valuation Certificate for pricing by CA, Cost Accountant or SEBI approved merchant banker shall be ………. Days

A

90 Days