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Introducing the “In Favour Of” filter in Case Laws.
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<h1>RBI Eases Overseas Direct Investment Rules: Key Changes in Performance Guarantees, Restructuring, Disinvestment, and Corporate Guarantees.</h1> The Reserve Bank of India has announced a liberalization and rationalization of regulations concerning overseas direct investment by Indian corporates. Key changes include: allowing only 50% of performance guarantees to be counted towards financial commitments, enabling restructuring of overseas entities' balance sheets involving capital write-offs up to 25% for both listed and unlisted companies, easing disinvestment rules under the Automatic Route for certain categories, and permitting corporate guarantees for step-down subsidiaries under specific conditions. These changes aim to provide more operational flexibility and are subject to reporting and compliance requirements as per the Foreign Exchange Management Act.