Determination of specified instruments as debt instruments- (Ministry of Finance ) (16 Oct 2019)
MANU/EAFF/0067/2019
Commercial
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:-
(i) Government bonds;
(ii) corporate bonds;
(iii) all tranches of securitisation structure which are not equity tranche;
(iv) borrowings by Indian firms through loans;
(v) depository receipts whose underlying securities are debt securities.
2. Instruments specified below shall be considered as non-debt instruments, namely:-
(i) all investments in equity in incorporated entities (public, private, listed and unlisted);
(ii) capital participation in Limited Liability Partnerships (LLPs);
(iii) all instruments of investment as recognised in the FDI policy as notified from time to time;
(iv) investment in units of Alternative Investment Funds (AIFs) and Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InVITs);
(v) investment in units of mutual funds and Exchange-Traded Fund (ETFs) which invest more than fifty per cent in equity;
(vi) the junior-most layer (i.e. equity tranche) of securitisation structure;
(vii) acquisition, sale or dealing directly in immovable property;
(viii) contribution to trusts;
(ix) depository receipts issued against equity instruments.
3. All other instruments which are not specified in paragraphs (1) and (2) above, shall be deemed as debt instruments.
Tags : DETERMINATION DEBT INSTRUMENTS NON-DEBT INSTRUMENTS
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