Rule 16 - Pricing guidelines - Foreign Exchange Management (Overseas Investment) Rules, 2022

16. Pricing guidelines . (1) Unless otherwise provided in these rules, the issue or transfer of equity capital of a foreign entity from a person resident outside India or a person resident in India to a person resident in India who is eligible to make such investment or from a person resident in India to a person resident outside India shall be subject to a price arrived on an arm s length basis. (2) The AD bank, before facilitating a transaction under sub-rule (1), shall ensure compliance with arm s length pricing taking into consideration the valuation as per any internationally accepted pricing methodology for valuation.