RBI:
1. RBI has issued Revised Pricing Guidelines for Issue/ Transfer of Shares or Convertible Debentures under Foreign Direct Investment (FDI) in India. The new pricing guidelines (i) In case of listed companies : The issue and transfer of shares including compulsorily convertible preference shares and compulsorily convertible debentures shall be as per the SEBI guidelines and the non-resident investor shall be eligible to exit at the market price prevailing on the recognised stock exchanges subject to lock-in period as stipulated, without any assured return. (ii) In case of unlisted companies : shall be at a price worked out as per any internationally accepted pricing methodology on arm’s length basis. These directions shall come into effect from the date of the publication of the relative Notification in the Official Gazette.
2. RBI has decided that the Issue of Partly Paid Shares and Warrants by Indian Company to Foreign Investors in accordance with the provision of the Companies Act, 2013 and the SEBI guidelines, as applicable, shall be eligible instruments for the purpose of FDI and foreign portfolio investment (FPI) by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolio Investors (RFPIs) subject to compliance with FDI and FPI schemes. The pricing of the partly paid equity shares shall be determined upfront and 25% of the total consideration amount (including share premium, if any), shall also be received upfront; The balance consideration towards fully paid equity shares shall be received within a period of 12 months.
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