IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 14 Aug 2013 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 14 August 2013, the Reserve Bank of India (RBI) reduced the threshold amount of outward foreign direct investments of an Indian party in joint ventures (JV) and/or wholly owned susidiaries (WOS) not requiring prior approval from the RBI. This threshold amount was reduced from 400% to 100% of the net worth of the Indian party. If the investment exceeds this limit an approval is required from the RBI. The provision only applies to FDI proposals submitted after the inception date.
 
For the purpose of this regulation, net worth is defined as the paid up capital and free reserves of the company/companies incorporated in India making the investment.
 

AFFECTED COUNTRIES

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