INDIA Law and Practice Contributed by: Lalit Kumar, JSA Advocates and Solicitors
as external commercial borrowing and will require compliance with the ECB guidelines. • As foreign investors, foreign VC funds will not be entitled to any assured return (ie, on exit they cannot repatriate more than the value of shares as determined by a valuer). They can exit by exercising a put option after a mini - mum lock-in period of one year from the date of investment. • Foreign VC must ensure that the terms of the shareholders’ agreement are incorporated in the investee company’s articles of associa - tion (ie, the by-laws of the investee company), otherwise the terms will not be enforceable.
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