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Unlisted Indian Cos. allowed to raise capital abroad; extended relaxation up to two years from subsequent listing

ISSUE OF FOREIGN CURRENCY CONVERTIBLE BONDS AND ORDINARY SHARES (THROUGH DEPOSITARY RECEIPT MECHANISM) (AMENDMENT) SCHEME, 2013 - AMENDMENT IN PARAGRAPH 3
NOTIFICATION NO.GSR 684(E) [F.NO.4/13/2012-ECB], DATED 11-10-2013
Central Government hereby amend the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993, namely:—
1. This Scheme may be called the issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) (Amendment) Scheme, 2013.
2. The Scheme shall be deemed to have come into force from the date of publication of Notification; and
3. In the "Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993;
In Paragraph 3(1)(B) the words "Unlisted Indian Companies Issuing Global Depository Receipts/Foreign Currency Convertible Bonds shall be required to simultaneously list in the Indian stock Exchanges(s)" shall be replaced by the following:
"Unlisted companies shall be allowed to raise capital abroad without the requirement of prior or subsequent listing in India initially for a period of two years subject to the following conditions:—
a. Unlisted companies shall list abroad only on exchanges in IOSCO/FATF compliant jurisdictions or those jurisdictions with which SRBI has signed bilateral agreements;
b. The Companies shall file a copy of the return which they submit to the proposed exchange/regulators also to SEBI for the purpose of PMI.A. They shall comply with SEBI's disclosure requirements in addition to that of the primary exchange prior to the listing abroad;
c. While raising resources abroad, the listing company shall be fully compliant with the FDI Policy in force;
d. capital raised abroad may be utilised for retiring outstanding overseas debt or for operations abroad including for acquisitions;
e. In case the funds raised are not utilised abroad as stipulated at d above, such companies shall remit the money back to India within 15 days and such money shall be parked only in AD category banks recognised by RBI and may be used domestically.

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