Making Overseas Direct Investment by Indian entity

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.... * acquisition through bidding or tender procedure; * acquisition of equity capital by way of rights issue or allotment of bonus shares; * capitalisation, within the time period, if any, specified for realisation under the Act, of any amount due towards the Indian entity from the foreign entity, the remittance of which is permitted under the Act or does not require prior permission of the Central Government or the Reserve Bank under the Act or any rules or regulations made or directions issued thereunder; * the swap of securities; * merger, demerger, amalgamation or any scheme of arrangement as per the applicable laws in India or laws of the host country or the host jurisdiction, as the case may be. 2. ODI in financial services act....

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....ults of such period may be excluded for considering the profitability period of three years. * such period may be extended by the Reserve Bank in consultation with the Central Government, as it may deem necessary: 3. An Indian entity NOT engaged in the insurance sector may make ODI in general and health insurance where such insurance business is supporting the core activity undertaken overseas by such an Indian entity. 4. Overseas Investment by banks and non-banking financial institutions regulated by the Reserve Bank shall be subject to the conditions laid down by the Reserve Bank under applicable laws in this regard. 3. Limit for financial commitment * The total financial commitment made by an Indian entity in all the foreign en....

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....rough such resources prior to the date of notification of the OI Rules/Regulations shall not be reckoned towards the limit. * b) Where the proceeds from External Commercial Borrowings (ECB) are utilised for making financial commitment, the same shall be reckoned towards the financial commitment limit. However, only that part of the ECB shall be reckoned towards the financial commitment limit that exceeds the amount of the corresponding pledge or creation of charge on assets which has already been counted towards the financial commitment limit. [ Foreign Exchange Management (Overseas Investment) Directions, 2022 ] Explanation.- For the purposes of this Schedule, a foreign entity shall be considered to be engaged in the business of financi....