RBI Amends Foreign Exchange Rules: Indian Firms Can Now Raise Foreign Investment Limit to Sectoral Cap with Board Approval.

The Reserve Bank of India has issued amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000. Effective immediately, these changes allow Indian companies to increase the foreign investment limit from 24% up to the sectoral cap or statutory ceiling. This increase requires the approval of the company's Board of Directors and a subsequent special resolution by the General Body. These amendments modify the previous regulations issued in May 2000 and are published in the Official Gazette of the Government of India.

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