Investments by FPIs in Non-Convertible / Redeemable preference shares or debentures of Indian companies
Summary
This circular permits Foreign Portfolio Investors to invest in non-convertible or redeemable preference shares and debentures issued by Indian companies. These investments are allowed on a repatriation basis for securities listed on recognized Indian stock exchanges. The total investment amount is counted towards the Corporate Debt Investment Limit of US$ 51 billion.
Text
an Indian company is permitted to issue non-convertible/redeemable preference shares or debentures to non-resident shareholders... subject to no-objection from the Income Tax Authorities.
FPIs are permitted to invest on repatriation basis, in non-convertible/redeemable preference shares or debentures issued by an Indian company... and listed on recognized stock exchanges in India.
The investments by FPIs in the abovementioned securities shall be reckoned against the Corporate Debt Investment Limits (US$ 51 billion).
Source: SecMarx — Investments by FPIs in Non-Convertible / Redeemable preference shares or debentures of Indian companies. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.