Global Trade Alert

On 7 Septemeber 2012, the Reserve Bank of India (RBI) amended the Notification specifying the conditions for the transfer or issue of any foreign security. Under the new regime, Indian parties may now invest in Pakistani joint ventures or wholly owned subsidiaries. Prior to the change, Indian parties were banned from any investment in Pakistan.
 
The financial commitment for such investments (applicable for all countries) are capped at a maximum of 100% of the net worth of the Indian party, where net worth is defined as the paid up capital and free reserves of the company/companies incorporated in India making the investment.