TagForeign investment

RBI allows convertible notes for Startups from foreign sources

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As part of policy hacks, we covered the issue of Convertible notes being recognized by Ministry of Company affairs (MCA) in our earlier blog here. For benefit of users to start, the convertible note has been explained below. What is a convertible note? Convertible notes are debt instruments that converts in to equity, at a later date. The lender initially gives a loan with an understanding that...