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Dear all, A listed company has entered to a subscriptttion and shareholders agreement with a foreign investor to raise USD 1 million (equivalent to 5% of postissue paid up capital). There is a buy back agreement with the promoters where by promoter shall buy back the shares if the market price after 3 years does not give a IRR of 15% on the investment to the investor. The investor wants the promoter to secure this by pledging shares. whether this can be done as per RBI / FEMA regulations, if yes, what is the process?
Regards
Prashant Jain
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CAclubindia
