Rupee Denominated Bonds Issued by Indian Companies Exclusively to Persons Resident Outside India exempted from certain provisions of the Companies Act

The MCA has, by way of a notification dated August 3, 2016, clarified that unless otherwise specified by the RBI, provisions of Chapter III of the Companies Act (relating to prospectus and allotment of securities) and Rule 18 of the Share Capital Rules (relating to debentures) do not apply to issue of rupee denominated bonds made exclusively to persons resident outside India. A corresponding amendment has been made to Rule 18(11) of the Share Capital Rules as well.