ANNOUNCEMENT 05 Aug 2013

In August 2013, the government of India announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



RBI Notification

http://rbi.org.in/Scripts/NotificationUser.aspx?Id=8315&Mode=0

Amended Notification
http://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2126&Mode=0


Inception date: 05 Aug 2013 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 5 August 2013, the Reserve Bank of India (RBI) permitted resident individuals to make Overseas Direct Investments (ODI) in equity shares or compulsorily convertible preference shares of a Joint Venture (JV) or a Wholly Owned Subsidiary (WOS) outside India.
 
Some important conditions for such investments are presented below:
- Investments in JV's or WOS's engaged in real estate, banking or financial services activity are not permitted.
- The permitted ceiling at the time of investment is prescribed under the Liberalised Remittance Scheme (currently USD 75,000).
- The JV or WOS to be acquired or set up shall be an operating entity only.
- Disinvestment by the individual shall be allowed after one year from the date of making first remittance.
- The disinvestment proceeds shall be repatriated to India within 60 days from the date of disinvestment.
- No write-off shall be allowed in case of disinvestments.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A