Overseas Investment Rules and Regulations notified towards Ease of Doing Business

The Government of India, in collaboration with the Reserve Bank, has developed the Outward Investments Rules in accordance with the Foreign Exchange Management Act 2015 revision. The Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, as well as the Foreign Exchange Management (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015, now control an Indian resident’s foreign investment.

To streamline these rules, the Indian government launched a thorough effort in cooperation with the Reserve Bank. The public was also given access to the Foreign Exchange Management (Overseas Investment) Rules and draught Foreign Exchange Management (Overseas Investment) Regulations for comment. Existing laws governing overseas investments and the purchase and transfer of real estate outside of India have been included in these rules and regulations.

Indian corporates must participate in the global value chain due to the changing needs of businesses in a more interconnected global market. The updated legal framework for foreign investment offers simplification of the previous framework and has been adjusted to reflect the current dynamics of business and the economy. The “Ease of Doing Business” has been greatly improved thanks to the addition of clarity about overseas direct investment and overseas portfolio investment, as well as the transition of numerous overseas investment-related transactions that were previously approved to the automated route.