TOPIC 17: QUICK REFERENCE TO “Modes of Payment allowed for receiving FDI in the Indian Company”

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Quick Reference to " Modes of Payment allowed for receiving FDI in the Indian Company " :-..
# The Indian Company issuing Securities to a Resident Outside india can receive payment of Consideration through :-
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1. Normal Banking Channels ( Inward Remittance through banks ).
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2. Debit to NRE Account ( Non Residdnt rupee A/c ).
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3. Debit to FCNR ( B ) ( FCNR = Foreign Currency Non-Repatriable account ).
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4. Debit to Escrow ( Non interest bearing account with approval of AD Category I bank )
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5. Through Conversion of Royalty or Know - how fees.
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6. Conversion of Import Payables with approval of FIPB.
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7. Swap of Capital Instrument ( Govt. Approval is required) .
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8. Conversion of Pre- Incorporation Expenses with approval of FIPB.
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** Note:-.
The Shares or Convertible Securities Should be issued within 180 days from the receipt / Collection of Inward Remittance or Date of Debit to NRE or FCNR ( B ) / ESCROW account otherwise amount shall be refunded.
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Regards
ACA SOURAV BAGARIA