Gon.ral Circular No: 09/2016

                                    No 1212013-CL-V
                                     Governmenl of India
                                 Minislry ol Corpo.ale Aftai6

                                                       ti   Floor,   A Wing, Shasti Bhavan,
                                                                     Dr R.P Road, New Delbi

                                                                          Dar6d:03.08.2016


All R6gional Dlrcctor3,
All Rogistr.F ol Comp.niG.

Subjoct l*uance ot rupoo bonds to ov.rsscs Inv.stora by Indisn companio. -
       Claritic.tion ros.rdins applibility of prcvbioN of Ch:ptar lll of th
       Compani4 Act.20l3,

Sir,

       The Minislry has received lercnces trom slaleholders seeking claity on
applicability of provisions of Chapter lll ol the Companies Acl, 2013 (Act).nd tule 18 ol
Companies (Sharc Capital and Oebenlure) Rules. 2014 to lhe issus or rupee bonds by
Indian @mpanies exclusively to peEons rside.i oulside India in accordance wilh
applible *cloral regulalory provisions







2  The natler has ben xami.ed in lhe Minislrv in consullalion with Re*de Bank of
hdia. The matter relaling lo issue oI rupee denominated bonds lo orcGeas investors is
being eg|]lated by RBI as part of ECB Policy f.aremlk. lt is accodingly cl.rilied that
unless olhetuise provided in lhe cncular/ dtections/ regulalions iss@d by ReseNe Bank
of India. provisions ol Chapter llloltheAct and rule 18 otCofnpanies (Shar Capilal and
Oebentu) Rules. 2014 rculd not apply lo issue of rupe denminaled bonds made
exclusilely lo persons residenl oolside India in a@odane wilh applible secloral
regulalory prcvisions as stated above. Necssary changs in Companies (Share Capital
and Oebenture) Rules,2014 in this,esard abeing nade







3   Thas issues with   lhe appoval of lhe compelent authodty