Saturday, January 24, 2009

FEMA_Practical Problems_11

With reference to the relevant provisions of the Foreign Exchange Management Act, 1999 and the Foreign Exchange Management Regulations, 2000, advise on
the following :
(i) Crescent Ltd. is interested in issuing shares under the Employees Stock Option Scheme to persons resident outside India.
(ii) Mozart Ltd., an Indian company, after winning the bid, intends to approach the authorised dealer for remittances towards acquisition of the foreign company.
(iii) A mutual fund, registered in India, is interested to invest in the rated bonds of a listed overseas company which has shareholding of 5% in a listed Indian company.

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