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TMI BlogForeign Exchange Management (Nondebt Instruments) Amendment Rules, 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... lled the Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2024. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (hereinafter referred to as the principal rules), in rule 2- (i) after clause (aa), the following clause shall be inserted, namely:- '(aaa) "International Exchange" shall mean permitted stock exchange in permissible jurisdictions which are listed at Schedule XI annexed to these rules;'; (ii) for clause (ag), the following clause shall be substituted, namely:- '(ag) "listed Indian company" means an Indian company which has any of its equity instruments or debt instruments listed on a recognise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... existing shareholders, subject to the following conditions, namely:- (i) such issue or offer of equity shares of existing shareholders shall be permitted and such shares shall be listed on any of the specified International Exchange. (ii) such issue or offer of equity shares of existing shareholders shall be subject to prohibited activities, and sectoral caps prescribed in paragraph 2 and 3 of Schedule I to these rules; (iii) such equity shares to be issued by the public Indian company or offered by its existing shareholders on an International Exchange shall be in dematerialised form and rank pari passu with equity shares listed on a recognised stock exchange in India: Provided that the prior Government approval, wherever applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Indian company, any of its promoters, promoter group or directors or selling shareholders are not debarred from accessing the capital market by the appropriate regulator; (b) none of the promoters or directors of the public Indian company is a promoter or director of any other Indian company which is debarred from accessing the capital market by the appropriate regulator; (c) the public Indian company or any of its promoters or directors is not a wilful defaulter; (d) the public Indian company is not under inspection or investigation under the provisions of the Companies Act, 2013 (18 of 2013); (e) none of its promoters or directors is a fugitive economic offender. (ii) Existing holders of the public Indian company shall be eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of clauses (I) and (II) of sub-paragraph (1) of paragraph 3 and items (a) and (b) of sub-clause (ii) of clauses (I) and (II) of sub-paragraph (1) of paragraph 3 shall not apply to the persons or entities mentioned therein, who were debarred in the past by the Government or the appropriate regulator and the period of debarment is already over as on the date of listing of its equity shares on the International Exchange(s). 4. Obligations of companies .- (1) The public Indian company shall ensure compliance with extant laws relating to issuance of equity shares, including requirements prescribed in this Scheme, the Securities Contracts (Regulation) Act,1956 (42 of 1956), the Securities and Exchange Board of India Act, 1992 (15 of 1992), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r transfer of equity shares shall be determined by a book- building process as permitted by the said International Exchange and shall not be less than the fair market value under applicable rules or regulations under the Foreign Exchange Management Act, 1999(42 of 1999): Provided that subsequent issuance or transfer of shares for the purpose of listing additional shares post initial listing would be based on applicable pricing norms of the International Exchange and the permissible jurisdiction. Explanation.- For the purposes of this Scheme- (a) "appropriate regulator" means any financial sector regulator or Government Ministry or Department administering Acts applicable to the company, listed or unlisted; (b) "beneficial owner" sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son who is categorised as a wilful defaulter by any bank or financial institution or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India. Annexure List of International Exchanges 1. International Financial Services Centre in India- India International Exchange, NSE International Exchange.'. [F. No. 4/1/ECB/2019] SURBHI JAIN, Jt. Secy. Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O.3732 (E), dated the 17th October, 2019 and subsequently amended vide notification numbers: - (i) S.O. 4355 (E), dated the 5th December 2019; (ii) S.O. 1278 (E), dated the 22nd April, 2020; (iii) S.O. 1374 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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