Indian start-ups can now raise 100% funds from an FVCI

A person residing outside India, except citizens of Pakistan and Bangladesh, will be permitted to purchase convertible notes issued by an Indian start-up for an amount of Rs 25 lakhs or more in a single tranche.

Non-resident Indians (NRIs) can also acquire convertible notes on non-repatriation basis with government approval and will have to furnish reports as prescribed by the Reserve Bank of India (RBI), said the document.

The government has in the past year liberalised FDI policy in about a dozen sectors, including civil aviation, real estate, private security agencies, defence and media. (DS)

ALCHEMPro News Desk – India