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RBI issues Master Direction on Foreign investment in India
January, 08th 2018

The Reserve Bank of India, in consultation with the Government of India, has revised the Regulations on foreign investment in India and has repealed and replaced the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000 (Notification No. FEMA 20) and Foreign Exchange Management (Investment in a Firm or Proprietary Concern in India) Regulations, 2000 (Notification No. FEMA 24) both dated May 3, 2000 with the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2017 dated November 7, 2017 (Notification No. FEMA 20(R)).

It may be recalled that the Reserve Bank had informed that the rationalization exercise is being undertaken vide Press Release on “RBI rationalizes FEMA Regulations” dated February 4, 2016. The rationalized Regulations have been framed keeping in view the objective of promoting ease of doing business, both from the regulatory as well as supervisory perspective.

Consequent to the rationalization, the Master Direction on ‘Foreign investment in India’ consolidating all the instructions relevant to foreign investment in India is being issued and placed on the website, https://www.rbi.org.in.

Anirudha D. Jadhav
Assistant Manager

Press Release : 2017-2018/1841

 
 
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