News & Media 14th Apr 2022

Start-ups to get 5 more years to convert ‘convertible notes’ into equity shares


Yashojit Mitra Partner | Mumbai

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Start-ups will now get five more years to convert convertible notes into equity shares. This is one of various changes in Foreign Exchange Management (Non-debt Instruments or NDI) Rules, 2019, notified by the Finance Ministry. Another important change intends to allow an Indian company to issue share-based employee benefit to a person outside India.

Against this backdrop, Yashojit Mitra, Partner at Economic Laws Practice (ELP) has been quoted by BusinessLine in their article titled ‘Start-ups to get 5 more years to convert ‘convertible notes’ into equity shares’. Yashojit is of the opinion that the change would give more flexibility to structure investments through the venture debt route.

Read the comment and detailed article here: Click Here