Important Points for IC 99 - Asset Management Exam
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Eligibility to issue DRs : Rule 3 lays down that a company may issue depository receipts provided it is eligible to do so in terms of the Scheme and relevant provisions of the Foreign Exchange Management Act, Rules and Regulations.
A direct investment made by a MNE by creating a new foreign enterprise is known as a greenfield investment.
In a FDI, the capital inflow is translated into additional production capacity. The Fll investment helps in increasing fund availability in general rather than enhancing the capital of a specific enterprise.
Foreign investment will not be reckoned as FDI if the investment is made in partly and mandatorily convertible debentures.
Foreign currency convertible bonds (FCCBs) issued by Indian companies in the overseas market are classified as debt security.
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