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TMI BlogDefinitionsX X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1) of section 10 of the Act; (v) 'Capital Instruments' means equity shares, debentures, preference shares and share warrants issued by an Indian company; Explanation: (a) Equity shares issued in accordance with the provisions of the Companies Act, 2013 shall include equity shares that have been partly paid. The expression 'Debentures' means fully, compulsorily and mandatorily convertible debentures. 'Preference shares' means fully, compulsorily and mandatorily convertible preference shares. Share Warrants are those issued by an Indian Company in accordance with the Regulations issued by the Securities and Exchange Board of India. Capital instruments can contain an optionality clause subject to a minimum lock-in period of one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccurrence of specified events as per the other terms and conditions agreed to and indicated in the instrument; (vii) 'Domestic Custodian' means a custodian of securities, an Indian Depository, a Depository Participant, or a bank and having permission from Securities and Exchange Board of India to provide services as custodian; (viii) 'Domestic Depository' means a custodian of securities registered with the Securities and Exchange Board of India and authorised by the issuing entity to issue Indian Depository Receipts; (ix) 'Depository Receipt' means a foreign currency denominated instrument, whether listed on an international exchange or not, issued by a foreign depository in a permissible jurisdiction on the back of eligible securities i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Depository Receipt Mechanism) Scheme, 1993; (xvii) 'Foreign Direct Investment' (FDI) means investment through capital instruments by a person resident outside India in an unlisted Indian company; or in 10 percent or more of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company; Note: In case an existing investment by a person resident outside India in capital instruments of a listed Indian company falls to a level below 10 percent of the post issue paid-up equity capital on a fully diluted basis, the investment shall continue to be treated as FDI. Explanation: Fully diluted basis means the total number of shares that would be outstanding if all possible sources of conversion are exercised (xviii) ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor (FII) or a sub account registered under the Securities Exchange Board of India (Foreign Institutional Investors) Regulations, 1995 and holding a valid certificate of registration from Securities and Exchange Board of India shall be deemed to be a FPI till the expiry of the block of three years from the enactment of the Securities Exchange Board of India (FPI) Regulations, 2014. (xxi) 'Government approval' means approval from the erstwhile Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion, Government of India and/ or the erstwhile Foreign Investment Promotion Board (FIPB) and/ or any of the ministry/ department of the Government of India as the case may be; (xxii) 'Group company' means two or mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly; (xxix) 'Investment Vehicle' means an entity registered and regulated under relevant regulations framed by Securities and Exchange Board of India or any other authority designated for the purpose and shall include Real Estate Investment Trusts (REITs) governed by the Securities and Exchange Board of India (REITs) Regulations, 2014, Infrastructure Investment Trusts (InvIts) governed by the Securities and Exchange Board of India (InvIts) Regulations, 2014 and Alternative Investment Funds (AIFs) governed by the Securities and Exchange Board of India (AIFs) Regulations, 2012; (xxx) 'Limited Liability Partnership (LLP)' means a partnership formed and registered under the Limited Liability Partnership Act, 2008; (xxxi) 'Listed Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trial Assistance in the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India; (xxxix) 'Sectoral cap' means the maximum investment including both foreign investment on a repatriation basis by persons resident outside India in capital instruments of a company or the capital of an LLP, as the case may be, and indirect foreign investment, unless provided otherwise. This shall be the composite limit for the Indian investee entity; Explanation: (a) FCCBs and DRs having underlying of instruments being in the nature of debt shall not be included in the sectoral cap. (b) Any equity holding by a person resident outside India resulting from conversion of any debt instrument under any arrangement sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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