Exemption for SEZ units: SEZ branches may be established without prior RBI approval subject to sectoral FDI, Companies Act compliance, and stand-alone operation. The Regulations add a stand alone basis definition to restrict specified branch offices to Special Economic Zones and exempt companies from prior RBI approval to establish branches or units in SEZs for manufacturing and services, provided they operate in sectors permitting full FDI, comply with Companies Act corporate and winding-up provisions, function on a stand-alone basis, and use an Authorised Dealer with required documents for remittance of winding-up proceeds.