Section 13(12) in Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017
(12)Form Convertible Notes (CN):(a)The Indian startup company issuing Convertible Notes to a person resident outside India shall report such inflows to the Authorised Dealer bank in Form CN within 30 days of such issue.(b)A person resident in India, who may be a transferor or transferee of Convertible Notes issued by an Indian startup company shall report such transfers to or from a person resident outside India, as the case may be, in Form CN to the Authorised Dealer bank within 30 days of such transfer.(c)The Authorised Dealer bank shall submit consolidated statements to the Reserve Bank. Provided, the format, periodicity and manner of submission of such reporting shall be as prescribed by Reserve Bank in this regard.
