Thursday, October 15, 2015

Government opens FDI door wider by allowing partly-paid shares.

The Centre has eased Foreign Direct Investment (FDI) norms by allowing partly-paid shares and
warrants as eligible capital instruments. This means an Indian company looking to bring in funds can now issue such instruments without any approval. The Central Bank had, however, stipulated that the company issuing paid-up shares/warrants needs to ensure that sectoral caps are not breached even after the shares get fully paid-up or warrants get converted into fully paid equity shares

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