Alert October 25, 2011

Client Alert: Indian Authorities Limit Exit Mechanisms by Shutting Down Put Options Held by Foreign Investors

Goodwin Procter’s Asia Practice issued a Client Alert analyzing the Indian government’s modification of its foreign direct investment policy framework to provide that equity instruments with “in-built” options or supported by options sold by third parties, if issued or transferred to foreign investors, would lose their equity character and be subject to additional regulation applicable to external commercial borrowings.