Hi Everybody,
Can anybody please provide me the checklist for issuing secured Compulsary Convertable Debenture in a PVT. Ltd. Company.
Further these debentures are to be issued in return to the loan taken from Foreing entity, so also please also tell what should be the compliances as per the FEMA regulations.
Thanks
Ashwin
Dear Ashwin,
Sec.3(1)(iii)(d) read with Rule 2(b)(X) of companies (Acceptence of Deposit) rules, 1975 provides for issue of convertible debentures secured by mortgage of assets not being intanginble assets.
The company has to appoint debenture trustee and enter into debenture trust deed.
FEMA regulations are applicable.
CAclubindia
