Issue of shares to Overseas Investors
The issue of shares to overseas investors, also known as foreign or international investors, refers to the process of a company or corporation offering its ownership stakes (shares or stocks) to individuals, institutions, or entities that are located outside the company's home country or jurisdiction.
Issue of shares for Unlisted Companies
Compliance with Foreign Exchange Management (Non-debt Instruments) Rules, 2019:
- Governed by Rule 21 of Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
- Valuation Certificate requirement: There is a requirement of Valuation Certificate by a Merchant Banker.
Issue of shares for Listed Companies
Compliance with Foreign Exchange Management (Non-debt Instruments) Rules, 2019:
- Governed by Rule 21 of Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
- Valuation Certificate requirement: There is no valuation certificate under Foreign Exchange Management (Non-debt Instruments) Rules, 2019 for Listed Companies.
Key Points to Consider
01
Which is the governing law for Unlisted
Foreign Exchange Management (Non-debt Instruments) Rules, 2019
02
Which is the governing law for listed
Foreign Exchange Management (Non-debt Instruments) Rules, 2019
03
Who does the Valuation
Merchant Banker
04
When valuation is required
At the time of the Issue of Securities
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