Overseas Direct Investment- Rationalisation

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....ry - I (AD Category - I) banks is invited to Notification No.FEMA120/RB-2004 dated July 7, 2004, [Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 as amended from time to time (the Notification). In order to rationalise the existing provisions, the following changes have been effected in the Regulations governing overseas investments. 1. Investment in a ....

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....d. 2. Pledge of shares of the overseas JV / WOS to an overseas lender In terms of Regulation 18 of the Notification ibid, an Indian party is permitted to transfer by way of pledge, shares held in a JV / WOS outside India, as a security for availing of fund based or non-fund based facilities for itself or for the JV / WOS, to an AD Category - I bank in India. In order to provide operationa....