MCA:
MCA has issued clarification on applicability of provisions of Chapter III of the Companies Act, 2013 (Act) to the issue of Foreign Currency Convertible Bonds (FCCBS) and Foreign Currency Bonds (FCBs) by Indian companies exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions. It is, accordingly, clarified that unless otherwise provided in the Scheme or the directions/regulations as issued by Reserve Bank of lndia, provisions of Chapter III of the Act shall not apply to an issue of a FCCB or FCB made exclusively to persons resident outside India in accordance with the above mentioned regulations.
Ministry of Finance:
The Central Government notifies the Depository Receipts Scheme, 2014 for facilitating issue of depository receipts outside India, which shall come into force with effect from December 15, 2014. The provisions of this Scheme shall be implemented by the respective authorities, namely, the RBI, SEBI, MCA and MoF. Any Indian company, listed or unlisted, private or public; any other issuer of permissible securities; any person holding permissible securities; are eligible to issue or transfer permissible securities to a foreign depository for the purpose of issue of depository receipts. The aggregate of permissible securities which may be issued or transferred to foreign depositories for issue of depository receipts shall not exceed the limit on foreign holding of such permissible securities and at a price less than the price applicable to a corresponding mode of issue of such securities to domestic investors under the applicable laws under the Foreign Exchange Management Act, 1999.
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