Loan given by a indian company to iits 100 % foreign subsidi

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2013 Dear Members,

Pleas answer the below query that whether an Indian company who has given the loan to its 100 % foreign subsidiary mining company a year ago can convert the loan to share capital with the approval of RBI.
What are the formalities in relating to this since the subsidiary company cannot pay off the interest on loan since the revenue has not started and will not start in the next 2 years.

Thanks

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2013 Any good expert please reply on this ,, i request P B Srivatshan to reply on the same