Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad
This Master Circular outlines the regulations and guidelines for direct investment by residents in joint ventures (JVs) or wholly owned subsidiaries (WOSs) abroad.
Section A – General
This section provides an introduction to the regulations, statutory basis, and prohibitions on direct investment abroad. It also clarifies the general permission granted to residents for making investments abroad.
Section B – Direct Investment Outside India
This section outlines the automatic route for direct investment outside India, including:
- Issue of guarantee by an Indian party to a step-down subsidiary of a JV/WOS.
- Investment through a Special Purpose Vehicle (SPV) under the automatic route.
- Investment in unincorporated entities overseas in the oil sector under the automatic route.
It also explains the method of funding and capitalization for such investments.
Operational Instructions to Authorised Dealer Banks
This section provides operational instructions to authorized dealer banks for facilitating direct investments abroad.
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