What are the permissible sources for the funding of Overseas Direct Investment?
CS Executive · Economic, Business and Commercial Laws · PYQS · June 2021
What are the permissible sources for the funding of Overseas Direct Investment?
Answer & Explanation:
Permissible Sources for Funding of Overseas Direct Investment are as under: Drawal of foreign exchange from an Authorised Dealer(AD) bank in India; Capitalisation of exports; Swap of shares; Proceeds of External Commercial Borrowings (ECBs) / Foreign Currency Convertible Bonds (FCCBs); In exchange of American Depository Receipts (ADRs) / Global Depository Receipts(GDRs )issued in accordance with the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (through Depository Receipt Mechanism) Scheme, 1993, and the guidelines issued thereunder from time to time by the Government of India; Balances held in Exchange Earners Foreign Currency (EEFC) account of the Indian Party maintained with an authorised dealer and Proceeds of foreign currency funds raised through ADR / GDR issues.
Topics: Overseas Direct Investment
Related Questions in this Topic
- Distinguish between Apartment and Building under Real Estate (Regulation and Development) Act, 2016
- Distinguish between Vested and Contingent Interest under Transfer of Property Act, 1882.
- Distinguish between Right of Lien and Stoppage in transit under Sale of Goods Act, 1930.
- Distinguish between Partnership at will and Particular Partnership under Indian Partnership Act, 1932.
- Distinguish between Special Agent and General Agent under Indian Contract Act, 1872