BOOST TO FUNDING STARTUPS: THE ISSUE OF CONVERTIBLE NOTES TO FOREIGN INVESTORS

Published On: 01/01/2017

Practice Area: Corporate & Commercial

Authors:

The Reserve Bank of India has amended theForeign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (the "TISPRO Regulations"), on January 10, 2017 (the "TISPRO Amendment"), to provide for the issuance of ‘convertible notes’ to foreign investors by start-up companies.