Master Direction – Foreign Investment in India Flashcards
The FEMA, 1999 empowers the Central Government to prescribe, in consultation with the RBI, rules pertaining ……………………………………….
to capital account transactions, not involving debt instruments.
Foreign Portfolio Investment is any investment made by a person resident outside India in equity instruments where such investment is ………………………………………………………
(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.
……………………….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
Foreign Investment
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.
Twelve, 25, Twelve
Debentures/ Preference Shares which …… ,……… and …………. are are treated as equity instruments.
fully, compulsorily and mandatorily convertible
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
5 years
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
twenty five lakh rupees or more
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
10
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.
24
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?
- if they exceed the limit than they have to sell the excess within 5 trading days after the settlement to a resident Indian.
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
10, 24
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 ……….
USD 5 billion, SEBI
……………………………… is defined in SEBI circular dated the 9th October 2018.
“Eligible Foreign Entity (EEE)”
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?
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.
what is the limit for Investments by Non-Resident Indian (NRI) or Overseas Citizen of India (OCI) on non-repatriation basis
don’t have any limits
