Overseas Investments – New India
In a bid to enhance the ease of doing business, India's finance ministry on 22nd August, 2022 notified rules and the Reserve Bank of India brought in revamped regulations for overseas investment by Indian entities.
Overseas investments by a person resident in India shall be governed by the Foreign Exchange Management (Overseas Investment) Rules, 2022 and the Foreign Exchange Management (Overseas Investment) Regulations, 2022.
The new mechanism simplifies the existing structure for overseas investment by persons resident in India by widening the umbrella of approved economic activities and significantly reducing specific approvals requirements. The core to these Rules & Regulations are three distinct definitions of Overseas Direct Investment (ODI), Overseas Investment(OI) and Overseas Portfolio Investment(OPI).
We at Factum Legal have endeavored to bring to you a short series on new ODI Rules and Regulations . The series shall be in seven chapters, covering:
i. Key Points of the Foreign Exchange Management (Overseas Investment) Rules, 2022.
ii. Key points of the Foreign Exchange Management (Overseas Investment) Regulations, 2022.
iii. ODI by Indian Entity under new regime.
iv. OPI by Indian Entity under new regime.
v. OI by Resident Individual under new regime.
vi. OI person resident in India other than Indian entity and Resident Individual under new regime.
vii. OI in IFSC by person resident in India under new regime.
We now present to you our Second chapter:
You can direct your queries or comments to the author at info@factumlegal.com
Disclaimer-
The contents of this article should not be construed as legal opinion. This article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. We expressly disclaim any financial or other responsibility arising due to any action taken by any person on the basis of this article.
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