Convertible bonds


This query is : Resolved 

24 September 2014 hello sir,

can indian private company raise convertible bonds from foreign residents or from foreign company. if can raise what is the procedure to raise those bonds.
thanking you but we need how to raise these funds... please clarify

24 September 2014 yes you can...but you need to satisfy RBI's ECB/FDI guidelines depending upon structure of the bonds.

24 September 2014 Thanking you sir,
but i want to know what procedures have to take.
please clarify me.

24 September 2014 first you need to go through ECB and FDI guidelines and decide which one applies to your case...only then the procedure can be decided..right!

24 September 2014 can we appoint/induct a foreign national as a shareholder/director in a indian private company. can we issue convertible bonds to that person.

24 September 2014 1. yes you can appoint a foreign national as director.

2. but issuance of CCDs will require to comply with FDI guidelines which normally include reporting to RBI regarding receipt of application money and allotment of securities. In certain industrial sectors FIPB approval is required prior to allotment of securities

in case of optionally convertible bonds, ECB guidelines need to be followed

Your banker shall assist you in this regards


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