Economics · FEMA Guidelines and Convertible Notes

Consider the following statements regarding the regulatory protocols under the revised FEMA regulations for Convertible Notes issued by start-ups and Indian Depository Receipts (IDRs): 1. Start-ups are permitted to receive payments for Convertible Notes either through inward remittance or by utilizing repatriable accounts. 2. The regulatory framework strictly prohibits the remittance of sale or repayment proceeds from Convertible Notes outside India, mandating their credit exclusively to specified domestic accounts. 3. Overseas Citizens of India (OCIs), alongside NRIs and FPIs, are authorized to invest in IDRs using Non-Resident External (NRE) or FCNR(B) accounts. 4. The redemption or conversion of IDRs must be executed in strict compliance with the Foreign Exchange Management (Deposit) (Fifth Amendment) Regulations, 2025. Which of the statements given above are correct?