Wednesday, September 29, 2010

FDI and Issue of Shares For Consideration Other Than Cash: Discussion Paper

The DIPP has released a discussion paper on the subject of "Issue of shares For Consideration Other Than Cash" with specific reference to Foreign Direct Investment. The paper has considered the following issues:

  • issue of shares against import of capital goods, machinery or equipment including second hand equipment
  • issue of shares against services
  • issue of shares against import of raw materials and trade payables.
  • issue of shares against pre-operative or pre-incorporation expenses.
  • share swaps
  • issue of shares against intangible assets including franchisee agreements
  • issue of shares against one time extraordinary payment including arbitral awards
The discussion paper has also outlined some specific issues that may arise in this regard.



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