Overseas Direct Investment, Liberalization/Rationalization

The RBI vide a recent circular, dated May 27, 2011 has made certain changes to the  prevailing ODI Regulations. The objective is to provide operational flexibility to Indian Corporates having investment abroad. Some of the changes brought about are with respect to:

  • Performance Guarantees issued by the Indian Party.
  • Restructuring of the balance sheet of the overseas entity involving write-off of capital and receivables.
  • Disinvestment by the Indian Parties of their stake in an overseas JV/WOS involving write-off.
  • Issue of guarantee by an Indian Party to step down subsidiary of JV/WOS under general permission.

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