Question

What is the requirement for the pricing or conversion formula of convertible capital instruments according to the FDI policy?

a.

It should be decided at the time of conversion

b.

It should be determined upfront at the time of issue

c.

It should be lower than the fair value worked out at the time of issuance

d.

It should be decided based on the extant FEMA regulations

Answer: (b).It should be determined upfront at the time of issue Explanation:The pricing or conversion formula of convertible capital instruments should be determined upfront at the time of issue, according to the FDI policy.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the requirement for the pricing or conversion formula of convertible capital instruments according to the FDI policy?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What are the permissible methods for an Indian company to receive the amount of consideration for shares or convertible debentures under the FDI Scheme?

Q. What happens if shares or convertible debentures are not issued within 180 days from the date of receipt of inward remittance or debit to NRE/FCNR/Escrow account?

Q. Under what conditions may the Reserve Bank permit an Indian company to refund or allot shares after the 180-day period?

Q. In which sectors has FDI not been prohibited under the Government Route or the Automatic Route?

Q. What is NOT a permissible method for an Indian company to receive the amount of consideration for shares or convertible debentures?

Q. What recent reform has the Reserve Bank of India introduced in India's FDI Policy?

Q. What is the minimum lock-in period for exit according to the recent changes in the FDI Policy?

Q. In the case of an unlisted company, how can an investor exit after the lock-in period?

Q. What conditions apply to the exit of a non-resident investor in a listed company after the lock-in period?

Q. What change has the RBI made regarding the issuance of non-convertible redeemable preference shares or debentures to non-resident shareholders?

Q. What condition applies to the issuance of preference shares and convertible debentures under the FDI scheme?

Q. What is the significance of the optionality clauses allowed by the RBI in equity shares and convertible preference shares/debentures?

Q. What is the minimum lock-in period for instruments with optionality clauses under the FDI scheme?

Q. In the case of an unlisted company, how can a non-resident investor exit after the lock-in period?

Q. What was the FDI figure in May 2014?

Q. In 2013-14, what was the total FDI inflow in India?

Q. What steps has the government taken to boost FDI in the country?

Q. What is the maximum percentage of the paid-up capital of an Indian company that SEBI registered FIIs and its sub-accounts can acquire?

Q. What is the condition for SEBI registered FIIs/sub-accounts to invest in primary issues of Non-Convertible Debentures (NCDs)/bonds?

Q. What action should an Indian company take if it wants to raise its FII investment limit from 24% to the sectoral cap/statutory ceiling?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!