Master Circular on Direct Investment by Residents in Joint Venture (JV) /Wholly Owned Subsidiary (WOS) Abroad

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Master Circular on Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad

This Master Circular outlines the guidelines and regulations for direct investment by residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) abroad.

Section A – General

This section provides an introduction to the guidelines, statutory basis, and prohibitions on direct investment outside India.

Section B – Direct Investment Outside India

This section outlines the automatic route for direct investment, including:

  • Issue of guarantee by an Indian Party to step down subsidiary of JV / WOS
  • Investment through Special Purpose Vehicle (SPV) under Automatic Route

Section C – Other Investments in Foreign Securities

This section provides guidelines for other investments in foreign securities.

Operational Instructions to Authorised Dealer Banks

This section outlines the operational instructions for authorised dealer banks.

Part – I

This part provides detailed guidelines and regulations for direct investment outside India.

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Download: Master Circular on Direct Investment by Residents in Joint Venture (JV) /Wholly Owned Subsidiary (WOS) Abroad

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