Overseas direct investment by Indian residents permitted via automatic and approval routes with caps, funding rules and mandatory reporting. The Master Circular consolidates rules under FEMA 2004 for resident Indian direct investment in overseas JV/WOS through two routes: an Automatic Route permitting investments up to 400% of the investor's net worth (including equity, loans and 100% of guarantees) subject to conditions, and an Approval Route for other cases. It prescribes funding methods, valuation and reporting requirements, sectoral restrictions (real estate, banking, financial services), SPV rules, disinvestment conditions, mandatory routing via a designated AD Category I bank, use of Form ODI and allotment of a Unique Identification Number, and ongoing APR and compliance obligations.
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Provisions expressly mentioned in the judgment/order text.
Overseas direct investment by Indian residents permitted via automatic and approval routes with caps, funding rules and mandatory reporting.
The Master Circular consolidates rules under FEMA 2004 for resident Indian direct investment in overseas JV/WOS through two routes: an Automatic Route permitting investments up to 400% of the investor's net worth (including equity, loans and 100% of guarantees) subject to conditions, and an Approval Route for other cases. It prescribes funding methods, valuation and reporting requirements, sectoral restrictions (real estate, banking, financial services), SPV rules, disinvestment conditions, mandatory routing via a designated AD Category I bank, use of Form ODI and allotment of a Unique Identification Number, and ongoing APR and compliance obligations.
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