Revised Overseas Investment Rules and Regulations Notified
·
Extant regulations pertaining to Overseas Investments and
Acquisition and Transfer of Immovable Property Outside
India have been subsumed within these rules and regulations.
·
Overseas investment related transactions that were
earlier under approval route are now under automatic route,
In line with the amendment in the Foreign Exchange Management
Act 2015, Outward Investments Rules have been framed by the Government of India
in consultation with the Reserve Bank. Presently, the overseas investment by a person
resident in India is governed by the Foreign Exchange Management (Transfer or Issue
of Any Foreign Security) Regulations, 2004 and the Foreign Exchange Management (Acquisition
and Transfer of Immovable Property Outside India) Regulations,
2015.
The Government of India in consultation with the Reserve Bank
undertook a comprehensive exercise to simplify these regulations. Draft Foreign
Exchange Management (Overseas Investment) Rules and draft Foreign Exchange Management
(Overseas Investment) Regulations were also put in the public domain for consultations.
Extant regulations pertaining to Overseas Investments and Acquisition and Transfer
of Immovable Property Outside India have been subsumed
within these rules and regulations.
In view of the evolving needs of businesses in India, in an
increasingly integrated global market, there is need of Indian corporates to be
part of global value chain. The revised regulatory framework for overseas investment
provides for simplification of the existing framework for overseas investment and
has been aligned with the current business and economic dynamics. Clarity on Overseas
Direct Investment and Overseas Portfolio Investment has been brought in and various
overseas investment related transactions that were earlier under approval route
are now under automatic route, significantly enhancing "Ease of Doing Business".
Overseas
Investment Rules and Regulations, 2022 can be accessed at: