Clarification on 'Indian Party'

[Khushi Khatwani]

The definition of the term 'Indian Party' does not include individuals.

So, are the Obligations of Indian Party also mandatory for individuals?

Also, what are the restrictions on an individual investing in JV/WOS abroad?

[DR.MARIAPPAN GOVINDARAJAN]

May I know from which Act/rules/Regulation you refer the term 'Indian Party'?

[Khushi Khatwani]

Foreign Exchange Management Act, 1999

[DR.MARIAPPAN GOVINDARAJAN]

To the best of my knowledge there is no definition 'Indian Party' in FEMA.

AI Summary

Indian Party definition under FEMA remains unclear, so obligations on individuals investing abroad are unestablished. The primary issue is whether the term Indian Party under the Foreign Exchange Management Act, 1999 includes individuals and thus whether obligations on an Indian Party bind natural persons; the discussion records that 'Indian Party' is not defined in FEMA and does not establish statutory obligations or specific restrictions for individuals investing in joint ventures or wholly owned subsidiaries abroad.