ARTICLE · 28 NOVEMBER 2024

FEMA –Amendments Related To Investment In Overseas Funds

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Vide circular dated 7 June 2024 (Circular), the Reserve Bank of India (‘RBI') has introduced two important amendments related to investment under Overseas Portfolio Investment (‘OPI') route.

IndiaFinance and Banking

Aurtus Consulting LLP

BACKGROUND

Vide circular dated 7 June 2024 (Circular), the Reserve Bank of India ('RBI') has introduced two important amendments related to investment under Overseas Portfolio Investment ('OPI') route. The position prior to introduction of this circular, amendments and its impact are explained below.

POSITION PRIOR TO RBI CIRCULAR¹ DATED 7 JUNE 2024

Regulation: Prior to introduction of the Circular, the Foreign Exchange Management (Overseas Investment) Directions, 2022 ('OI Directions') provided an option to listed Indian companies and resident individuals to make investment into overseas funds under OPI route, subject to fulfilment of the following two conditions:
1. Investment should be in 'units' of the overseas fund; and

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