Master Direction – Overseas Investment
This Master Direction outlines the rules and regulations for overseas investment by Indian entities.
Definitions and Associated Details
The direction defines key terms such as “foreign entity”, “strategic sector”, “control”, “Indian entity”, “subsidiary”, “step down subsidiary (SDS)”, “Overseas Direct Investment (ODI)”, “equity capital”, “financial commitment”, and “Overseas Portfolio Investment (OPI)”.
General Provisions
The direction outlines various general provisions, including:
– Exemptions from applicability of OI Rules/Regulations/Directions
– Permission for making overseas investment
– Approval from the Central Government and the Reserve Bank
– No Objection Certificate (NOC) from the lender bank/regulatory body/investigative agency
– Rights issue and bonus shares
– Acquisition of a foreign entity through merger/amalgamation
The direction also outlines specific provisions and operational instructions for Authorized Dealer (AD) banks.
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Download: Master Direction – Overseas Investment