1. FOREIGN INVESTMENT – NOTIFICATIONS BY THE
RBI1
1.1 AMENDMENT TO FOREIGN INVESTMENT RULES: PASSING THE
BATON BACK TO THE RESERVE BANK OF INDIA
INTRODUCTION
When the Foreign Exchange Management (Non-debt Instruments)
Rules, 2019 (the "Rules") were first
notified in the latter half of 2019, the Rules revised the long
standing regime in relation to monitoring and management of foreign
direct investment ("FDI") in India,
which had historically been the responsibility of the Reserve Bank
of India (the "RBI"). The Rules made a
departure and mandated that the RBI consult with the government of
India in relation to several matters concerning FDI. The Foreign
Exchange Management (Non-debt Instruments) (Third Amendment) Rules,
20202 (the "Third Amendment")
introduced on July 27, 2020 by the Department of Economic Affairs
under the ambit of Ministry of Finance, further amend the Rules to
pass the baton back to the RBI for matters relation to monitoring
and management
