Regulation 20A - Overseas Direct Investments by Resident Individuals

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....esident Individuals 1. Resident individual is prohibited from making direct investment in a JV or WOS abroad which is engaged in the real estate business or banking business or in the business of financial services. activity. 2. The JV or WOS abroad shall be engaged in bonafide business activity. 3. Resident individual is prohibited from making direct investment in a JV ....

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....on: The investment made out of the balances held in EEFC / RFC account shall also be restricted to the limit prescribed under LRS.] 6. The JV or WOS, to be acquired / set up by a resident individual under this Schedule, shall be an operating entity only and no step down subsidiary is allowed to be acquired or set up by the JV or WOS. 7. For the purpose of making investment under ....

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....transfer/sale or by way of liquidation/merger of the JV or WOS. 2. Disinvestment by a resident individual shall be allowed after one year from the date of making first remittance for setting up or acquiring the JV or WOS abroad. 3. The disinvestment proceeds shall be repatriated to India immediately and in any case not later than 60 days from the date of disinvestment and the sam....

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....otification shall also apply to the resident individuals who have set up or acquired a JV or WOS under the provisions of this Schedule. ^4[(4) The disinvestment by the resident individual may be reported by the designated AD to the Reserve Bank in Part IV of Form ODI, as prescribed by the Reserve Bank from time to time, within 30 days of receipt of disinvestment proceeds. ]]   ....