Foreign Exchange Management (Overseas Investment) Rules, 2022

Under the Foreign Exchange Management (Overseas Investment) Regulations, 2022, the equity capital purchased from a foreign entity is to be reckoned as Overseas Direct Investment (ODI). The payment is to be deferred for a definite period as stated in the agreement between the “Foreign Entity” and the “Indian Entity”.

As there is rapid growth in the Indian Market, there is a high demand for Indian Companies to be part of the global chain. On 22nd August 2022, the Ministry of Finance notified the Foreign Exchange Management (Overseas Investment) Rules, 2022 in suppression of the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 and Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015.