Foreign Exchange Management (Overseas Investment) Directions, 2022 (dated August 22, 2022) (Supersedes Master Direction – Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad (Updated as on June 24, 2021))

RBI Master Direction Link

Key Provisions of Foreign Exchange Management (Overseas Investment) Directions, 2022

The Directions provide guidelines for overseas investments by Indian entities. They define key terms such as “foreign entity”, “strategic sector”, “control”, “Indian entity”, “subsidiary”, and “Overseas Direct Investment (ODI)”.

Exemptions and Approvals: The Directions outline exemptions from applicability of OI Rules/Regulations/Directions, and the permission and approval process for making overseas investments, including approval from the Central Government and the Reserve Bank.

Additional Requirements: A No Objection Certificate (NOC) from the lender bank/regulatory body/investigative agency is required. The Directions also cover rights issue and bonus shares, and the acquisition of a foreign entity through bidding or tender procedure.

Overseas Direct Investment (ODI): The Directions provide guidelines for ODI, including the definition of ODI, equity capital, and financial commitment.

Other Provisions: The Directions also cover Overseas Portfolio Investment (OPI), listed equity capital or instruments, and other related aspects of overseas investments.

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Download: Foreign Exchange Management (Overseas Investment) Directions, 2022 (dated August 22, 2022) (Supersedes Master Direction – Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad (Updated as on June 24, 2021))