RBI allows MSEs to sell stake to foreign investors

The Reserve Bank of India (RBI) has allowed micro and small enterprises (MSEs) who have de-registered their small scale industry status to sell stake to foreign investors to help them attract funds. It has been decided that such companies may issue shares or convertible debentures to a person president outside India. A company which is reckoned as Micro and Small Enterprises (MSE) may issue shares or convertible debentures to a person resident outside India, subject to the limits prescribed. It also allowed industrial units not into MSE to issue shares in excess of 24 per cent of its paid up capital with approval of the government.