Section 5(2) in The Foreign Exchange Management (Borrowing And Lending In Rupees) Regulations, 2000
(2)The borrowing by issue of non-convertible debentures on repatriation basis shall be subject to the following additional conditions, namely:-(a)the percentage of Non-convertible Debentures (NCDs) issued to Non-resident Indians (NRIs)/Overseas Corporate Bodies (OCBs) to the total paid-up value of each series of Non-convertible Debentures (NCDs) issued shall not exceed the ceiling prescribed for issue of equity shares/convertible debentures for foreign direct investment in India as specified by the Reserve Bank from time to time, under the relevant regulations, and(b)the amount of investment is received by remittance from outside India through normal banking channels or by transfer of funds held in the investor's Non-resident External (NRE)/Foreign Currency Non-resident (FCNR) account maintained with an authorised dealer or an authorised bank in India;
