The Reserve Bank of India (RBI) on May 21, 2024, notified regarding the issuance of partly paid units to persons resident outside India by investment vehicles under Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
It has been decided to regularise the issuances of partly paid units by Alternative Investment Funds to persons resident outside India before the said amendment through compounding under the Foreign Exchange Management Act, 1999. However, before approaching the Reserve Bank for compounding, AD Category-I banks may ensure that the necessary administrative action, including the reporting of such issuances by Alternative Investment Funds to the Reserve Bank, through the Foreign Investment Reporting and Management System (FIRMS) Portal and issuing of conditional acknowledgements for such reporting, is completed.
The AD Category-I banks may bring the contents of this circular to the notice of their customers/constituents concerned.
[Notification No. RBI/2024-25/36 A.P. (DIR Series) Circular No. 7]
