AVVAIYAR Company limited, an unlisted company has to raise capital at New York. Whether this AVVAIYAR Company limited is allowed to raise capital at New York. If yes, list out the conditions to be fulfilled for raising c

Answer 2(a) Unlisted companies shall be allowed to raise capital abroad without the requirement of prior or subsequent listing in India initially for a period of two years with effect from 11th October, 2013, subject to the following conditions: Unlisted companies shall list abroad only on exchanges in IOSCO/FATF compliant jurisdictions or those with which SEBI has signed bilateral agreements; Such Companies shall file a copy of the return which they have submitted to the proposed exchange/ regulators also to SEBI for the purpose of Prevention of Money Laundering Act (PMLA). They shall comply with SEBI's disclosure requirements in addition to that of the primary exchange prior to the listing abroad; While raising resources abroad, the listing company shall be fully compliant with the FDI policy in force; The capital raised abroad may be utilized for retiring outstanding overseas debt or for bona fide operations abroad including for acquisitions; In case the funds raised are not utilized abroad as stipulated at point (d) above, such companies shall remit the money back to India within 15 days from the date of raising of funds and such money shall be parked only in AD Category-1 banks recognized by RBI and may be used domestically; The ADRs/GDRs shall be issued subject to sectoral cap, entry route, minimum capitalization norms, pricing norms, etc., as applicable as per FDI regulations notified from time to time; The number of underlying equity shares offered for issuance of ADRs/GDRs to be kept with the local custodian shall be determined upfront and ratio of ADRs/GDRs to equity shares shall be decided upfront based on applicable FDI pricing norms of equity shares of unlisted company; AVVAIYAR as an unlisted company of India shall comply with the instructions on downstream investment as notified from time to time; The criteria of eligibility of an unlisted company raising funds through ADRs/GDRs shall be as prescribed by the Government of India.