Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

April 2012

A.P. (DIR Series) Circular No. 89, dated 1-3-2012 — Foreign Institutional Investor (FII) investment in ‘to be listed’ debt securities.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
fiogf49gjkf0d
Presently, SEBI registered FII are allowed to invest only in listed non-convertible debentures (NCD)/ bonds issued by an Indian company.

This Circular permits SEBI registered FII/sub-accounts of FII to invest in primary issues of to be listed NCD/ bonds only if listing of such NCD/bonds is committed to be done within 15 days of such investment. In case the NCD/bonds are not listed within 15 days of issuance, then the FII/sub-account of FII must immediately dispose of these NCD/bonds either by way of sale to a third party or to the issuer. The terms of offer must contain a clause stating that the issuer will immediately redeem/buy back the said securities from the FII/sub-accounts of FII if they are not listed within 15 days of issuance.

Download PDF

You May Also Like

A.D.I.T. v Shri Vile Parle Kelvani Mandal ITAT Mumbai ‘E’ Branch Before Dinesh Kumar Agarwal (J.M.) and N.K. Billaiya (A.M.) ITA No. 7106/Mum/2011 Assessment Year: 2008-09. Decided on 05-10-2012 Counsel for Revenue/Assessee : A.B. Koli/A.H. Dalal

A.P. (DIR Series) Circular No. 90, dated 6-3- 2012 — Clarification — Liberalised remittance scheme for resident individuals.