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ARTICLE · 29 NOVEMBER 2017

RBI Notifies New Regulations On Foreign Investment

The Reserve Bank of India (RBI), vide Notification No. FEMA 20(R)/ 2017-RB, dated 7 November 2017 issued the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations

IndiaGovernment, Public Sector

The Reserve Bank of India (RBI), vide Notification No. FEMA 20(R)/ 2017-RB, dated 7 November 2017 issued the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 (the New Regulations). The New Regulations have superseded the erstwhile Notification No. FEMA 20/2000-RB and Notification No. FEMA 24/2000-RB, both dated 3 May 2000 (the Old Regulations). The New Regulations have come into force on the date of its publication in the Official Gazette on 8 November 2017.

Since the Old Regulations were issued in 2000, the RBI had notified various amendments till date. Now, the New Regulations consolidates all the amendments at once place and also incorporates certain new concepts with respect to the issue or transfer of securities of an Indian company by a person resident outside India.

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