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company law, fema

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01 March 2011 Please give me answer following as soon as possible.

One limited company but not listed, wants to raised the fund from the out side india.
then how many modes are there and their procedure?
e.g. issuing preference Share 0r loans & their effect on the FEMA,or RBI

03 March 2011 The company can even raise funds in india from PE Investors/ banks etc.

For foreign funding there are ECB guidelines for the same.


02 August 2011 Dear Sir,
The money can be raised in the following manner from outside India
(1) External commercial borrowing
(2) ADR/GDR
(3) FCCBs/FCEBs
(4) Foreign Venture capital investor
(5) Private Equity
(6) FDI/FIIs
But since the company is not listed on stock exchange in India therefore the point no (2) is not available to it.
Preference shares which are not convertible in shares are considered as debt. Non-convertible preference shares and loans shall be required to follow the guidelines of External commercial Borrowings.
If you any further clarity on this please be free to write.
Best regards,
CA. Sudha G. Bhushan
Sudhag999@gmail.com




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