Overseas direct investment restrictions: two tier structures need prior RBI approval and defaulters barred from automatic route. Indian parties may invest directly abroad in a Joint Venture or Wholly Owned Subsidiary under Regulation 6, but proposals using a holding company or Special Purpose Vehicle abroad that sets up step down subsidiaries require prior Reserve Bank approval. Parties on the Reserve Bank's Caution List or the Defaulters List are not eligible for the automatic route; authorised dealers must verify remitters are not listed and advise listed parties to seek prior approval from the Reserve Bank.
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Provisions expressly mentioned in the judgment/order text.
Overseas direct investment restrictions: two tier structures need prior RBI approval and defaulters barred from automatic route.
Indian parties may invest directly abroad in a Joint Venture or Wholly Owned Subsidiary under Regulation 6, but proposals using a holding company or Special Purpose Vehicle abroad that sets up step down subsidiaries require prior Reserve Bank approval. Parties on the Reserve Bank's Caution List or the Defaulters List are not eligible for the automatic route; authorised dealers must verify remitters are not listed and advise listed parties to seek prior approval from the Reserve Bank.
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