Overseas Direct Investment – Liberalisation of Automatic Route

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....ation of Automatic Route Attention of authorised dealers is invited to Regulation 6 of the Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2000 notified by the Reserve Bank, vide Notification No. FEMA 19/RB-2000 dated May 3, 2000, as amended from time to time. 2. Authorised dealers are aware that at present, Indian companies are permitted to make investment w....

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....by way of market purchases for investment in a foreign entity engaged in any bonafide business activity. 4. However, companies wishing to undertake financial activities would continue to be governed by the requirements prescribed in Regulation 7 of FEMA Notification No.19/RB-2000 dated 3rd May 2000. 5. The prohibition in respect of Two-Tier investments as prescribed vide A.P.(DIR) Circular No.....