Question

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

a.

Debit to non-interest bearing Escrow account

b.

Inward remittance through normal banking channels

c.

Conversion of import payables

d.

Cash payment in foreign currency

Answer: (d).Cash payment in foreign currency Explanation:Cash payment in foreign currency is not a permissible method for receiving the amount of consideration for shares or convertible debentures.

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

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