Section 3(3) in Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019
3.2Issue of Convertible Notes by an Indian start-up company. - A start-up company issuing convertible notes to a person resident outside India shall receive the amount of consideration by inward remittance through banking channels or by debit to the NRE/FCNR(B)/Escrow account maintained by the person concerned in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016. Repayment or sale proceeds may be remitted outside India or credited to NRE/FCNR(B) account maintained by the person concerned in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.
