This notification amends the Foreign Exchange Management ...

Key Changes in Foreign Exchange Rules: Control, Startup Definitions, Equity Transfers, and Investment Caps Updated.

August 23, 2024

Notifications     FEMA

This notification amends the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, introducing key changes. It defines "control" for limited liability partnerships and revises the definition of "startup company." It mandates prior government approval for equity transfers wherever applicable. It permits swapping equity instruments or equity capital between residents and non-residents, subject to rules and regulations. It excludes investment by NRIs/OCIs from indirect foreign investment calculation. It allows Indian companies to issue equity against swapping equity capital of foreign companies. It raises the foreign portfolio investment sectoral cap without ownership transfer. It permits 100% foreign investment in white label ATM operations under specific criteria. It clarifies common ownership criteria for investor groups of foreign portfolio investors. It exempts startup investments from sectoral caps for debt instruments while applying caps for equity investments.

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