Revamped Overseas Investment Rules: A Critical Insight

With an aim to improve the ‘ease of doing business' and simplifying/ liberalising the investment regime, the Government of India in consultation with the Reserve Bank of India (“RBI”), amongst others, has been progressively revamping and liberalizing the foreign exchange regime in India. In view of the foregoing, the Government of India vide Notification No. G.S.R 646(E), dated August 22, 2022, issued the Foreign Exchange Management (Overseas Investment) Rules, 2022 (“OI Rules”) and the RBI issued the Foreign Exchange Management (Overseas Investment) Regulations, 2022 (“OI Regulations”) and Foreign Exchange Management (Overseas Investment) Directions, 2022 (“OI Directions”; collectively with the OI Rules and OI Regulations, the “OI Regime”).