The Reserve Bank of India (RBI) on August 22, 2022, notified Foreign Exchange Management (Overseas Investment) Regulations, 2022.
The Regulations details are as follows-
•Financial commitment by Indian entity by modes other than equity capital
•Financial commitment by Indian entity by way of debt
•Financial commitment by way of guarantee
•Financial commitment by way of pledge or charge
•Acquisition or transfer by way of deferred payment
•Mode of payment
•Obligations of a person resident in India
•Reporting requirements for Overseas Investment
•Delay in reporting
•Restriction on further financial commitment or transfer
In these regulations, unless the context otherwise requires, “Act” means the Foreign Exchange Management Act, 1999 (42 of 1999); “debt instruments” shall have the same meaning as assigned to it in the Foreign Exchange Management (Overseas Investment) Rules, 2022, The words and expressions used but not defined in these regulations shall have the meanings respectively assigned to them in the Act or the Foreign Exchange Management (Overseas Investment) Rules, 2022.
They shall come into force on the date of their publication in the Official Gazette.
[Notification No. No. FEMA 400/2022-RB]
