Preference Shares/ Warrants to be permitted as FDI

The Reserve Bank of India, SEBI and the finance ministry has endorsed that Companies issuing preference shares and warrants to foreign investors will soon not require prior permission through the Foreign Investment Promotion Board (FIPB). The relaxation, which is expected to encourage merger & acquisition activity and boost foreign capital inflows, will be available to all sectors in which foreign direct investment is allowed on the automatic route.