The Reserve Bank of India (RBI) on June 07, 2024, notified regarding the amendment in the Foreign Exchange Management (Overseas Investment) Directions, 2022.
The Following has been amended namely: -
• In Para 1 (ix) which states “Overseas Portfolio Investment (OPI)”, clause (e) shall be substituted with “The investment (including sponsor contribution) in units or any other instrument (by whatever name called) issued by an investment fund overseas, duly regulated by the regulator for the financial sector in the host jurisdiction, shall be treated as OPI. Accordingly, in jurisdictions other than IFSCs, listed Indian companies and resident individuals may make such investments. Whereas in IFSCs, an unlisted Indian entity also may make such OPI in units or any other instrument (by whatever name called) issued by an investment fund or vehicle, in terms of schedule V of the OI Rules subject to limits, as applicable.
o Explanation: ‘investment fund overseas, duly regulated’ for this para shall also include funds whose activities are regulated by the financial sector regulator of the host country or jurisdiction through a fund manager.”
• In Para 24 which states "Overseas investment in an IFSC in India by a person resident in India", clause (1) shall be substituted with “A person resident in India, being an Indian entity or a resident individual, may make an investment (including sponsor contribution) in units or any other instrument (by whatever name called) issued by an investment fund or vehicle set up in an IFSC, as OPI. Accordingly, in addition to listed Indian companies and resident individuals, unlisted Indian entities also may make such investment in IFSC.”
[Notification no. - RBI/2024-25/41]
