RBI issues draft proposals to liberalise overseas investments norms


PTI, Aug 10, 2021, 10:27 AM IST

Mumbai: The Reserve Bank on Monday issued draft guidelines to further liberalise the regulatory framework governing overseas investments with a view to promote ease of doing business.

The RBI has placed on its website two documents — draft Foreign Exchange Management (Non-debt Instruments – Overseas Investment) Rules, 2021 and draft Foreign Exchange Management (Overseas Investment) Regulations, 2021.

Overseas investments and acquisition of immovable properties outside India by persons resident in India are presently governed by the provisions of Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 and Foreign Exchange Management (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015, respectively.

”With a view to further liberalise regulatory framework and also to promote ease of doing business, it has been decided to rationalise the existing provisions governing overseas investment,” the Reserve Bank said.

The rules and regulations will be finalised after public consultations, it added.

The Reserve Bank has sought comments and feedback from stakeholders on the two drafts by August 23, 2021.

The Draft Foreign Exchange Management (Non-debt Instruments – Overseas Investment) Rules, 2021 has outlined the restrictions on overseas investments.

As per the draft, a person resident in India is prohibited from making Overseas Direct Investment (ODI) in a foreign entity engaged in real estate activity; gambling in any form, and offering financial products linked to Indian Rupee except for products offered in an IFSC.

Also, the overseas investment will remain prohibited a foreign entity located in countries/ jurisdictions that are not Financial Action Task Force (FATF) and International Organization of Securities Commissions (IOSCO) compliant country or any other country/ jurisdiction as may be prescribed by the central government, it said.

The other draft on Foreign Exchange Management (Overseas Investment) Regulations, 2021 proposes that an Indian entity may lend or invest in any debt instruments issued by a foreign entity subject to such loans duly backed by a loan agreement and the rate of interest shall be charged on an arm’s length basis, among other things.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Rs 20.14 cr unaccounted cash seized in poll run up in Karnataka

HC grants bail to man held for sexually assaulting ‘friend’ at Mumbai beach in 2021

Congress’s Kolar conundrum remains unsolved despite CM, DCM attempt to quell dissent

Mangaluru: Illegal slaughterhouse raided by police, Three arrested

NIA arrests key conspirator in Bengaluru’s Rameshwaram Cafe blast case: Officials

RCB batting coach McKenzie backs Maxwell to come out of lean run

AAP using court for its political drama, repackaging old allegations: BJP

Related Articles More

RBI announces MPC schedule for FY25, first rates decision on April 5

Seven out of ten Indian shoppers say they would happily receive product deliveries without additional packaging

Renault Nissan to launch four new products, expand product portfolio

Sensex, Nifty rebound on heavy buying in Reliance Industries, HDFC Bank

IndiGo to fly more international routes, destinations; aims doubling size by 2030: CEO Pieter Elbers

MUST WATCH

Theft in a rented house @ Dandeli

World Sparrow Day

Sri Vishwaprasanna tirtha swamiji

How To Grow Healthy Red Amaranth leaves

Hotel Soorya


Latest Additions

Rs 20.14 cr unaccounted cash seized in poll run up in Karnataka

HC grants bail to man held for sexually assaulting ‘friend’ at Mumbai beach in 2021

Congress’s Kolar conundrum remains unsolved despite CM, DCM attempt to quell dissent

Mangaluru: Illegal slaughterhouse raided by police, Three arrested

‘No evidence of wrongdoing’: CBI closes UPA-era Air India aircraft leasing

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.