Corporate Updates – 15-09-2015


RBI with a view to provide greater flexibility for structuring of trade credit arrangements, has decided that the resident importer can raise trade credit in Rupees (INR) within the prescribed framework after entering into a loan agreement with the overseas lender being overseas supplier, bank and financial institution for import of capital and non-capital goods into India. Trade credit can be raised for import of all items (except gold) permissible under the extant Foreign Trade Policy and credit period for import of non-capital goods can be upto one year and for import of capital goods can be upto five years from the date of shipment. Further, overseas lenders of Rupee (INR) denominated trade credits will be eligible to hedge their exposure in Rupees through permitted derivative products in the on-shore market with an AD Category – I bank in India. Necessary guidelines for hedging will be issued separately.


SEBI makes the following regulations to further amend the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, which may be called as the SEBI (Issue of Capital and Disclosure Requirements) (Sixth Amendment) Regulations, 2015 and shall come into force on the date of their publication in the Official Gazette. The Amendments shall be applicable to issuers filing offer documents with the Registrar of Companies on or after the date of commencement of these regulations. Accordingly in Schedule XI, in Part A, in para (10)(b)(iii), following has been substituted :- "(iii) in case of allocation above Rs.250 crore; a minimum of 5 such investors and a maximum of 15 such investors for allocation upto Rs.250 crore and an additional 10 such investors for every additional Rs.250 crore or part thereof, shall be permitted, subject to a minimum allotment of Rs.5 crore per such investor."

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