Offer/ invitation to subscribe to securities through private placement cannot be made to a body corporate incorporated in, or a national of, a country sharing land border with India without Govt. approval

Now, during the process of making an offer or invitation to subscribe to securities through private placement, no offer or invitation of any securities can be made to a body corporate incorporated in, or a national of, a country which shares a land border with India, unless such body corporate or the national, as the case may be, have obtained Government approval under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 and attached the same with the private placement offer cum application letter.

This is in view of the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2022 which has gained immediate effect.

Source: Ministry of Corporate Affairs