Under the existing FDI policy, the following Capital Instruments for permissible for Investing in India under FEMA
· Equity Shares · Fully, Compulsorily and Mandatorily Convertible Preference Shares · Fully, Compulsorily and Mandatorily Convertible Debentures · FCCB's · Subscription to American / Global Depository Receipts of an Indian Company
Interest on Other type of Preference Shares/Debentures, would be denominated in Rupees and hence interest thereon has to be based on swap equivalent of LIBOR + permissible spread for corresponding maturity External Commercial Borrowings.
The Law is based on Consolidated FDI Policy Circular No.1 of 2012. Prepared by Mr. Arinjay Kumar Jain
