The RBI issued a notification to amend the Foreign Exchange
Management (Transfer or issue of Security by a Person Resident
outside India) Regulations, 2000 ("Regulations") under
the Foreign Exchange Management Act, 1999 ("FEMA"). The
Foreign Exchange Management (Transfer or Issue of Security by a
Person Resident outside India) (Tenth Amendment) Regulations, 2015
was notified on October 30, 2015 ("Notification") which
inter alia provides clarifications for computing of total foreign
investment (direct as well as indirect).
As per the Notification, while computing total foreign
investments in an Indian company, all types of investments, direct
or indirect, made under various schedules in the Regulations (other
than on non-repatriation basis) including investments by an FII,
FPI, NRI, QFI, investments in an Indian venture capital undertaking
by a foreign venture capital investor, or issue/transfer of
securities to a foreign depository will be taken into
