{"id":3087,"date":"2022-08-23T05:51:47","date_gmt":"2022-08-23T05:51:47","guid":{"rendered":"https:\/\/rvkassociates.com\/blog\/?p=3087"},"modified":"2022-08-23T05:51:49","modified_gmt":"2022-08-23T05:51:49","slug":"foreign-exchange-management-overseas-investment-directions-2022","status":"publish","type":"post","link":"https:\/\/rvks.in\/blogs\/foreign-exchange-management-overseas-investment-directions-2022\/","title":{"rendered":"Foreign Exchange Management (Overseas Investment) Directions, 2022"},"content":{"rendered":"\n

August 22, 2022<\/p>\n\n\n\n

All Category \u2013 I Authorised Dealer Banks
Madam\/Sir<\/p>\n\n\n\n

1. Overseas investments by persons resident in India enhance the scale and scope of business
operations of Indian entrepreneurs by providing global opportunities for growth. Such ventures
through easier access to technology, research and development, a wider global market and
reduced cost of capital along with other benefits increase the competitiveness of Indian entities
and boost their brand value. These overseas investments are also important drivers of foreign
trade and technology transfer thus boosting domestic employment, investment and growth
through such interlinkages.<\/p>\n\n\n\n

  1. 2. In keeping with the spirit of liberalisation and to promote ease of doing business, the Central
    Government and the Reserve Bank of India have been progressively simplifying the procedures
    and rationalising the rules and regulations under the Foreign Exchange Management Act, 1999.
    In this direction, a significant step has been taken with operationalisation of a new Overseas
    Investment regime. Foreign Exchange Management (Overseas Investment) Rules, 2022 have
    been notified by the Central Government vide Notification No. G.S.R. 646(E) dated August 22,
    2022 and Foreign Exchange Management (Overseas Investment) Regulations, 2022 have been
    notified by the Reserve Bank vide Notification No. FEMA 400\/2022-RB dated August 22, 2022 in
    supersession of the Notification No. FEMA 120\/2004-RB dated July 07, 2004 [Foreign Exchange
    Management (Transfer or Issue of any Foreign Security) (Amendment) Regulations, 2004] and
    Notification No. FEMA 7 (R)\/2015-RB dated January 21, 2016 [Foreign Exchange Management
    (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015]. The new
    regime simplifies the existing framework for overseas investment by persons resident in India to
    cover wider economic activity and significantly reduces the need for seeking specific approvals.
    This will reduce the compliance burden and associated compliance costs.<\/li><\/ol>\n\n\n\n
    1. 3. Some of the significant changes brought about through the new rules and regulations are
      summarised below:<\/li>
    2. (i) enhanced clarity with respect to various definitions;<\/li>
    3. (ii) introduction of the concept of \u201cstrategic sector\u201d;<\/li>
    4. (iii) dispensing with the requirement of approval for:
      1. a. deferred payment of consideration;<\/li>
      2. b. investment\/disinvestment by persons resident in India under investigation by any<\/li>
      3. investigative agency\/regulatory body;<\/li>
      4. c .issuance of corporate guarantees to or on behalf of second or subsequent level step<\/li>
      5. down subsidiary (SDS);<\/li>
      6. d. write-off on account of disinvestment;<\/li><\/ol><\/li>
      7. (iv) introduction of \u201cLate Submission Fee (LSF)\u201d for reporting delays.<\/li><\/ol>\n\n\n\n
        1. 4. The detailed operational instructions in this regard are given in Annex-I. The instructions contained in these directions shall supersede the instructions contained in the circulars listed in Annex-II.<\/li><\/ol>\n\n\n\n
          1. 5 . The revised reporting forms and instructions for filling up the forms under the new regime are
            being provided on Reserve Bank\u2019s website in Part VIII of the Master Direction no. 18 on \u2018Reporting
            under Foreign Exchange Management Act, 1999\u2019 dated January 01, 2016.<\/li><\/ol>\n\n\n\n
            1. 6. AD banks may bring the contents of the circular to the notice of their customers\/constituents
              concerned.<\/li><\/ol>\n\n\n\n
              1. 7. The directions contained in this circular have been issued under Section 10(4) and 11(1) of the
                Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions\/
                approvals, if any, required under any other law.<\/li><\/ol>\n\n\n\n

                Yours faithfully<\/p>\n\n\n\n


                Ajay Kumar Misra
                Chief General Manager-in-Charge<\/p>\n\n\n\n

                To Read More….
                Click the link below….<\/strong><\/p>\n\n\n\n

                Notification :<\/strong> https:\/\/www.dropbox.com\/s\/7v2uk6zoi9b93n9\/NT110B29188F1C4624C75808B53ADE5175A88.pdf?dl=0<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

                August 22, 2022 All Category \u2013 I Authorised Dealer BanksMadam\/Sir 1. Overseas investments by persons resident in India enhance the scale and scope of businessoperations of Indian entrepreneurs by providing global opportunities for growth. Such venturesthrough easier access to technology, research and development, a wider global market andreduced cost of capital along with other benefits […]<\/p>\n","protected":false},"author":1,"featured_media":1767,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,14],"tags":[34],"class_list":["post-3087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-notifications","category-rbi","tag-rbi"],"_links":{"self":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/3087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/comments?post=3087"}],"version-history":[{"count":1,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/3087\/revisions"}],"predecessor-version":[{"id":3088,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/3087\/revisions\/3088"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media\/1767"}],"wp:attachment":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media?parent=3087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/categories?post=3087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/tags?post=3087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}