Can an investment co. which is a pvt ltd co. issue secured/unsecured compulsarly convertible debentures to a foreign company for the purpose of acquiring shares in another company? Is there any difference between position of secured and unsecured debentures? Please cite proper legal authorities. Thanks in advance.
Acquiring secured or unsecured convertible debentures by a foreign company of an Indian Entity is governed under the Portfolio Investment Scheme regulated and controlled by the Reserve Bank of India. In such case the entity is required to procure sanction of RBI for the purpose of acquiring CC debentures