RBI UPDATE

Foreign Exchange Management (Deposit) Regulations, 2016

Reserve Bank of India has issued the Foreign Exchange Management (Deposit) Regulations, 2016 in supersession of the erstwhile Foreign Exchange Management (Deposit) Regulations, 2000, as amended from time to time.  

These regulations seek to regulate deposits between a person resident in India and a person resident outside...Continue Reading

RBI UPDATE

Foreign Investment in units issued by Real Estate Investment Trusts, Infrastructure Investment Trusts and Alternative Investment Funds governed by SEBI regulations

With a view to rationalising foreign investment regime for Alternative Investment vehicles and to facilitating foreign...Continue Reading

RBI UPDATE

Overseas Direct Investment (ODI) – Rationalization and reporting of ODI Forms

At present, application for ODI is required to be made in Form ODI – Part I (comprising six sections) for direct investments in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) under automatic route / approval route.

Further, remittances and other forms of financial commitment...Continue Reading

RBI UPDATE

Acceptance of deposits by Indian companies from a person resident outside India for nomination as Director

Under section 160 of the Companies Act, 2013, it is provided that a person who intends to nominate himself or any other person as a director in an Indian company is required to place a deposit with the said company.

In this...Continue Reading

RBI UPDATE

Overseas Direct Investment - Submission of Annual Performance Report

At present, an Indian Party (IP) / Resident Individual (RI) which has made an Overseas Direct Investment (ODI) has to comply with certain obligations. One of these includes obligation for submission of an Annual Performance Report (APR) in Form ODI Part III to the Reserve Bank by 30th of June every year...Continue Reading

RBI UPDATE

Foreign Direct Investment (FDI) in India – Review of FDI policy –Insurance sector

The extant FDI policy for Insurance sector has since been reviewed by the Government of India and accordingly it has been decided to enhance the limit of foreign investment in insurance sector from 26 to 49 percent under the automatic route subject to certain terms and...Continue Reading

RBI UPDATE

External Commercial Borrowings (ECB) – Revised framework

The extant ECB guidelines have been reviewed in consultation with the Government of India taking into account prevailing external funding sources, particularly for long term lending and the critical needs of infrastructure sector of the country. Accordingly, it has been decided to make the following changes in the ECB framework:...Continue Reading

RBI UPDATE

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifth Amendment) Regulations, 2016

In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, (Notification No. FEMA 20/2000-RB dated 3rd May 2000), in...Continue Reading

RBI UPDATE

Investment by Foreign Portfolio Investors (FPI) in Government Securities

The limits for investment by FPIs in Central Government Securities for the next half year are proposed to be increased in two tranches, i.e., by Rs. 105 billion from April 4, 2016 and by Rs.100 billion from July 5, 2016 respectively.

As in the previous half-year, the limits for State Development Loans...Continue Reading

RBI UPDATE

Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs)

In order to provide a simpler and faster mechanism to address the stress in the accounts of MSMEs and to facilitate the promotion and development of MSMEs, the Ministry of Micro, Small and Medium Enterprises, Government of India, vide their Gazette Notification dated May...Continue Reading