India has taken another step towards enhancing its investment landscape by amending the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. The changes aim to simplify processes and reduce regulatory burdens for domestic and foreign investors.
Key takeaways: – Easier Cross-Border Equity Swaps: Streamlined process for exchanging equity instruments between Indian and foreign companies, opening doors for more cross-border mergers and acquisitions. – Standardised Definitions: Alignment of key definitions like “control” and “startup company” with existing laws, ensuring greater clarity and consistency. – Facilitated FDI in White Label ATMs: 100% FDI allowed under the automatic route, subject to specific criteria, promoting financial inclusion and expanding the ATM network. – Other Improvements: Clarifications regarding downstream investments by OCI-owned entities and mandatory government approvals for certain equity transfers.
These amendments signal India’s commitment to creating a more attractive, investor-friendly environment. By simplifying procedures and aligning regulations, the government aims to boost foreign investment, support economic growth, and foster global expansion for Indian businesses.
Read this article by Anish Jaipuriar and Ashrika Rastogi: https://lnkd.in/gZ6WvPTT
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