Current Affairs · FEMA Regulations and Foreign Investment

An Indian start-up, Zenith Innovations Pvt. Ltd., recently received foreign investment consideration for the issuance of equity instruments. The company's compliance team is reviewing the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Third Amendment) Regulations, 2025 to ensure strict adherence to Schedule I mandates. Which of the following statements correctly align with the regulatory compliance requirements for Zenith Innovations? 1. The company is mandated to issue the equity instruments to the foreign investor within 60 days of receiving the inward remittance consideration. 2. If Zenith Innovations is unable to issue the equity instruments within the mandated 60-day timeframe, it must refund the funds within 15 days. 3. The consideration for the equity instruments can only be accepted via inward remittance, as the use of Rupee accounts under FEMA regulations is expressly prohibited. 4. The company is strictly restricted from opening any foreign currency accounts with Authorized Dealers to facilitate this equity issuance. Select the correct option: