Share on LinkedInShare on LinkedIn

ARTICLE · 20 AUGUST 2020

Structured Investments Under The Indian Insolvency Framework

As any foreign investor will know, India has an ever changing regulatory framework as well as a currency which is not freely convertible

IndiaFinance and Banking

Introduction

As any foreign investor will know, India has an ever changing regulatory framework as well as a currency which is not freely convertible. The result of this is that the markets and investors have developed various hybrid instruments with contractual rights to provide desired returns and economic requirements whilst at the same time being compliant with Indian regulations. Partially convertible instruments which were originally equity from a foreign investment perspective have for a long time now regarded as debt and any instrument which fixes the return or exit pricing also runs into regulatory issues. A permitted and popular instrument is compulsorily convertible debentures ("CCDs") from a foreign direct investment perspective which are routinely used by private equity firms, hedge funds and structured investors investing in India.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

The above is a generic analysis and should not be regarded as a substitute for specific advice based on the facts of a client’s objectives and specific commercial agreements reached. Please do reach out to us at [email protected] for any queries.

See more popular content from