The RBI said it has decided to allow FIIs, QFIs, Foreign Portfolio Investors (FPIs), long term investors like, Sovereign Wealth Funds, multilateral agencies, pension, insurance, endowment funds, foreign central banks to invest on repatriation basis, in non-convertible/redeemable preference shares or debentures issued by an Indian company within the overall limit of USD 51 billion earmarked for corporate debt.

Further, the Reserve Bank (RBI) notification said NRIs may also invest, both on repatriation and non-repatriation basis, in non-convertible shares, redeemable preference shares or debentures.

An Indian company is permitted to issue non-convertible share, redeemable preference shares or debentures to non-resident shareholders, including the depositories that act as trustees for the ADR/GDR holders by way of distribution as bonus from its general reserves.

(Agencies)

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