Overseas direct investment: Indian parties allowed subject to net-worth-linked limits, funding rules, designated dealer routing and valuation requirements. Regulation 6 permits Indian parties to make overseas direct investment in JVs or WOS subject to a cap tied to the investor's net worth, with specified items included in the financial commitment (remittances, capitalization of export proceeds, guarantees, certain ECB and guarantee values). Investments must be bona fide, not by parties under caution or investigation, routed through a designated authorised dealer branch, and reported via Form ODA. Funding sources include EEFC balances, authorised dealer foreign exchange drawals within net-worth-based limits, and ADR/GDR proceeds. Valuation of overseas shares must follow prescribed merchant banker or accountant criteria.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Overseas direct investment: Indian parties allowed subject to net-worth-linked limits, funding rules, designated dealer routing and valuation requirements.
Regulation 6 permits Indian parties to make overseas direct investment in JVs or WOS subject to a cap tied to the investor's net worth, with specified items included in the financial commitment (remittances, capitalization of export proceeds, guarantees, certain ECB and guarantee values). Investments must be bona fide, not by parties under caution or investigation, routed through a designated authorised dealer branch, and reported via Form ODA. Funding sources include EEFC balances, authorised dealer foreign exchange drawals within net-worth-based limits, and ADR/GDR proceeds. Valuation of overseas shares must follow prescribed merchant banker or accountant criteria.
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