Section 5(4) in The Foreign Exchange Management (Borrowing And Lending In Rupees) Regulations, 2000
(4)[ The borrowing by way of issue of preference shares on or after 30th day of April, 2007 other than those which are fully and mandatorily convertible into equity within a specified time and issue of convertible debentures on or after 7th day of June, 2007, other than those which are fully and mandatorily convertible into equity within a specified time, to a person resident outside India, shall be considered as debt and shall accordingly conform to regulation 6 of the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 (Notification No. FEMA. 3/2000-RB, dated 3rd May, 2000) including the limits to such borrowings as specified in the said regulations.] [ Inserted by G.S.R. 107(E), dated 20.1.2009 (w.e.f. 20.1.2009).]
