Question

When is foreign investment considered as FDI?

a.

Only if it involves upfront pricing

b.

Only if it is made in fully convertible debentures

c.

Only if it is made in equity shares

d.

If it is made in equity shares, fully and mandatorily convertible preference shares, and fully and mandatorily convertible debentures with upfront pricing

Answer: (d).If it is made in equity shares, fully and mandatorily convertible preference shares, and fully and mandatorily convertible debentures with upfront pricing Explanation:Foreign investment is considered as FDI if it is made in equity shares, fully and mandatorily convertible preference shares, and fully and mandatorily convertible debentures with upfront pricing.

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Q. When is foreign investment considered as FDI?

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