ANNOUNCEMENT 12 Nov 2013In November 2013, the government of India announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
On 12 November 2013, the Reserve Bank of India (RBI) amended a regulation concerning the establishment of a branch, liaison or project office in India by foreign service providers stemming from specific countries. In general, citizens of all countries are required to get an approval from the RBI to set up such an office, except for a banking company if it has obtained prior approval under the provisions of the Indian Banking Regulation Act.
However, the regulation enumerates certain countries whose citizens are prohibited from establishing any such office without prior permission of the RBI. Hong Kong and Macau were added to the list of such countries, which already includes Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran and China.
The services covered by this regulation include consultancy, market research, IT services, and air travel.