The term beneficial owner wasn’t defined under the Press Note 3 of 2020, and the FEMA (Non-debt Instruments) Rules, 2019. Hence, there existed a dichotomy in the industry, as to the ownership thresh...
Published On: 08/11/2019
Practice Area: Corporate & Commercial, Government & Regulatory, Capital Markets & International Offerings, Private Equity, Venture Capital and Fund Investment
Authors:
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Avimukt Dar
Akhoury Winnie Shekhar
Jaidrath Zaveri
Nabarun Chandra Ray
The Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (the 'Rules'), the Foreign Exchange Management (Debt Instrument) Regulations, 2019 (the 'Debt Regulations'), and the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019 have been recently notified. The Rules and both the regulations supersede the Foreign Exchange Management (Transfer of Issue of Security by a Person Resident outside India) Regulations, 2017 (the 'TISPRO'). INDUSLAW's @Avimukt Dar, Winnie Shekhar, Jaidrath Zaveri, and Nabarun Chandra Ray discuss the changes.
