Reserve Bank of India (RBI)

Optionality Clauses in FDI Instruments

The Reserve Bank of India has finally cleared the dust and permitted optionality clauses in equity shares and compulsorily and mandatorily convertible preference shares/debentures issued to a person resident outside India under the Foreign Direct Investment Scheme. An optionality clause will oblige the buy-back of securities from the foreign investor by Indian promoters/residents at the…

© Finsec Law Advisors | 2019
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