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<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head> <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0"> <tr> <td align="left" valign="top"> <br /> Ministry of Finance <br /><br /> Determination of specified instruments as debt instruments<br /><br /> MANU/EAFF/0067/2019 - (16 Oct 2019)<br /><br /> </td> </tr> <tr> <td align="left" valign="top"></td> </tr> <tr> <td align="left" valign="top" style="background-color:#FDEDCE"><strong>In exercise of the powers conferred by sub-section (7) of section 6 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby determines the following instruments as debt instruments, namely:- <br><br> (i) Government bonds; <br><br> (ii) corporate bonds; <br><br> (iii) all tranches of securitisation structure which are not equity tranche; <br><br> (iv) borrowings by Indian firms through loans; <br><br> (v) depository receipts whose underlying securities are debt securities. <br><br> 2. Instruments specified below shall be considered as non-debt instruments, namely:- <br><br> (i) all investments in equity in incorporated entities (public, private, listed and unlisted); <br><br> (ii) capital participation in Limited Liability Partnerships (LLPs); <br><br> (iii) all instruments of investment as recognised in the FDI policy as notified from time to time; <br><br> (iv) investment in units of Alternative Investment Funds (AIFs) and Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InVITs); <br><br> (v) investment in units of mutual funds and Exchange-Traded Fund (ETFs) which invest more than fifty per cent in equity; <br><br> (vi) the junior-most layer (i.e. equity tranche) of securitisation structure; <br><br> (vii) acquisition, sale or dealing directly in immovable property; <br><br> (viii) contribution to trusts; <br><br> (ix) depository receipts issued against equity instruments. <br><br> 3. All other instruments which are not specified in paragraphs (1) and (2) above, shall be deemed as debt instruments.</strong></td> </tr> <tr> <td align="left" valign="top" ><strong></strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Tags : Determination, Debt instruments, Non-debt instruments</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <!--<td><strong>Source : <a target="_new" href="http://www.manupatrafast.com/">newsroom.manupatra.com</a></strong></td>--> <td align="left" valign="top"><strong>Source : newsroom.manupatra.com</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <td align="left" valign="top">Regards</td> </tr> <tr> <td align="left" valign="top">Team Manupatra</td> </tr> <tr> <td align="left" valign="top"> </td> </tr> </table> </div> </body> </html>