company law, fema
This query is : Resolved
01 March 2011
Please give me answer following as soon as possible.
One limited company but not listed, wants to raised the fund from the out side india.
then how many modes are there and their procedure?
e.g. issuing preference Share 0r loans & their effect on the FEMA,or RBI
One limited company but not listed, wants to raised the fund from the out side india.
then how many modes are there and their procedure?
e.g. issuing preference Share 0r loans & their effect on the FEMA,or RBI
CA. Anuj Gupta
(Expert)
03 March 2011
The company can even raise funds in india from PE Investors/ banks etc.
For foreign funding there are ECB guidelines for the same.
For foreign funding there are ECB guidelines for the same.
02 August 2011
Dear Sir,
The money can be raised in the following manner from outside India
(1) External commercial borrowing
(2) ADR/GDR
(3) FCCBs/FCEBs
(4) Foreign Venture capital investor
(5) Private Equity
(6) FDI/FIIs
But since the company is not listed on stock exchange in India therefore the point no (2) is not available to it.
Preference shares which are not convertible in shares are considered as debt. Non-convertible preference shares and loans shall be required to follow the guidelines of External commercial Borrowings.
If you any further clarity on this please be free to write.
Best regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com
The money can be raised in the following manner from outside India
(1) External commercial borrowing
(2) ADR/GDR
(3) FCCBs/FCEBs
(4) Foreign Venture capital investor
(5) Private Equity
(6) FDI/FIIs
But since the company is not listed on stock exchange in India therefore the point no (2) is not available to it.
Preference shares which are not convertible in shares are considered as debt. Non-convertible preference shares and loans shall be required to follow the guidelines of External commercial Borrowings.
If you any further clarity on this please be free to write.
Best regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
