Unsecured Debenture by Pvt company, FEMA

[Muhammad Nazim]

Dear sir please give me your valuable opinion on the givensituation

AB PVT LTD Indian company having two shareholder one is A (NRE) holding only one share  and seconed Is B (foreign company) holding 9999 share.

FDI come under automatic route

all the investment by “B”

My Question is can we issue unsecured convertible debenture  to “B”  because Pvt ltd company can not issue unsecured debenture

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.