The Government of India (GOI), in consultation with the Reserve Bank of India (‘RBI’), has issued the Overseas Investments Rules and Regulations (‘OI Guidelines’) dated 22 August 2022 superseding the earlier framework of outbound investments in India governed by the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 (‘FEMA 120’) and the Foreign Exchange Management (Acquisition and Transfer of Immovable Property Outside India) Regulations 2015.
In order to provide clarity, RBI has also issued Foreign Exchange Management (Overseas Investment) Directions, 2022 on 22 August 2022 (‘OI Directions’) giving effect to the above, in supersession of the erstwhile Master Directions on Direct Investment by Residents in Joint Venture (‘JV’) / Wholly Owned Subsidiary (‘WOS’) abroad.
This Regulatory Alert summarizes the key changes brought vide the OI Guidelines and Directions.
