AgreementsContractsFEMAFundingInvestmentStartupsVenture CapitalAnti-Dilution Rights - How to Work Around the FEMA (TISPRO) Regulations, 2017 for Non-Residents (Part 5 of the five-part series)
In order to avoid the ‘Pricing Guidelines’ [discussed previously in Part 4 of this story], the additional shares to be allotted to the original investor of the Indian startup company to comply with the Anti-Dilution Rights must be issued under the ‘rights issue’ mechanism under Section 62 (1) (a) of the Companies Act, 2013 instead...