New Delhi, Aug 22 : The government has simplified the rules for overseas investment with the intention of improving the ease of doing business’.It has also simplified the current guidelines for investment overseas by making it more in line with the latest business trends and providing more clarity around direct investment in overseas and overseas portfolio investment.
This was done by bringing a variety of international investment transactions, previously in the approval process, to an the automatic route according to a statement released by the Finance Ministry said.
“In light of the changing requirements of companies in India, in an increasingly globalized market, there’s a a requirement of Indian corporations to be a part of the global value chain” it said while explaining the reasons of the decision.
In conjunction with the Reserve Bank of India (RBI) The government undertook an extensive exercise to simplify these rules.
The draft Foreign Exchange Management (Overseas Investment) Rules and draft Foreign Exchange Management (Overseas Investment) Regulations were also put in the public domain for public consultation.
Existing regulations on overseas investments, transfer and acquisition of immovable property outside of India have been incorporated into these regulations and rules, according to the statement.
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