MUMBAI Jan 16 Indian companies can convert
their overseas loans through the external commercial borrowing
(ECB) route into equity shares by using the prevailing forex
rate on the date of the swap agreement, the Reserve Bank of
India said on Thursday.
"It may be noted that the fair value of the equity shares to
be issued shall be worked out with reference to the date of
conversion only," the RBI said.
The central bank also said the liabilities of a company can
include lump sum fees or royalties or any other securities
issued to a non-resident, which are allowed to be converted to
equity shares under existing rules.
(Reporting by Neha Dasgupta and Subhadip Sircar; Editing by