Master Direction – Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad
This Master Direction outlines the guidelines for direct investment by residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) abroad.
Section A – General introduces the direction, stating its statutory basis and providing definitions for key terms.
Section B – Direct Investment (or financial commitment) outside India outlines the rules for investment through the Automatic Route, including:
– Investment through Special Purpose Vehicle (SPV) under Automatic Route
– Issue of guarantee by an Indian Party to step down subsidiary of JV / WOS
Section C – Other investments in foreign securities covers other types of investments in foreign securities.
Operational Instructions to Authorised Dealer Banks provides guidelines for banks to follow in facilitating these investments.
This direction aims to regulate and facilitate direct investment by Indian residents in JV/WOS abroad, promoting economic growth and development.
Chat with the Master Direction: