RBI allows foreign investors to invest in partly paid shares

Tags: News
Easing rules, the Reserve Bank today allowed foreign investors to invest in partly paid shares and warrants of Indian companies.

Such investors, till now, were only allowed to invest in equity shares and compulsorily and mandatorily convertible preference shares or debentures recognised as Foreign Direct Investment (FDI) compliant instruments.

Foreign investors can invest in partly paid equity shares and warrants issued by an Indian company which are now eligible instruments for the purpose of FDI and foreign portfolio investment (FPI) by Foreign Institutional Investors (FIIs), the RBI said in a notification.

"The pricing of the partly paid equity shares would be determined upfront and 25 per cent of the total consideration amount (including share premium, if any), would also be received upfront," it said.

The balance consideration towards fully paid equity shares would be received within a period of 12 months, it added.

Similar pricing formula has been prescribed for issuance of warrants to foreign investors.

Non-Resident Indians (NRIs) would also be eligible to invest on non-repatriation basis in partly-paid shares and warrants issued by Indian companies, it added.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • But what’s the big deal about Modi’s first hundred days?

    That Indians believe more in symbolism than substance is a fact that is well acknowledged and chronicled.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

West Asia turmoil worries east Asia

From Beijing to Jakarta, from Manila to Tokyo, east Asian ...

Purnendu Ghosh

Memory is a collage of the old and new

We are all fitted with pressure valves. Some of us ...

Shona Adhikari

The enduring legacy of <em>The Last Supper</em>

This week’s column features a work of art that is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture