Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2024.

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....ent) Rules, 2024.     (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (hereinafter referred to as the principal rules), in rule 2, -- (i) after clause (d), the following clause shall be inserted, namely: - '(da) "control" shall have the same meaning as assigned to it in the Companies Act, 2013 and for the purposes of Limited Liability Partnership, shall mean the right to appoint majority of the designated partners, where such designated partners, with specific exclusion to others, have control over all the policies of an LLP;'; (ii) for clause (an), the following clause shall be substit....

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.... cases wherever Government approval is applicable. Explanation. - For the purposes of this clause, the expression "equity capital" shall have the same meaning as assigned to it in the Foreign Exchange Management, (Overseas Investment) Rules, 2022, as amended from time to time.''. 5. In the principal rules, in rule 23, after sub-rule (7), in the explanation, -- (i) sub-clause (d) shall be omitted; (ii) in sub-clause (i), for the explanation, the following explanation shall be substituted, namely: - "Explanation. -- An investment made by an Indian entity which is owned and controlled by a Non-Resident Indian or an Overseas Citizen of India including a company, a trust and a partnership firm incorporated ....

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....ernment approval is applicable and the applications for approval shall be made in the manner prescribed by the Central Government from time to time."; (ii) in paragraph (3), in clause (a), for sub-clause (iii), the following sub-clause shall be substituted, namely: - "(iii) The aggregate foreign portfolio investment up to the sectoral or statutory cap shall not require Government approval or compliance of sectoral conditions as the case may be, if such investment does not result in transfer of ownership and/ or control of the resident Indian company from resident Indian citizens to persons resident outside India and other investments by a person resident outside India shall be subject to the conditions of Government approv....

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....ontrol, all such FPI's shall be treated as forming part of an investor group.". 8. In the principal rules, in Schedule VII, in paragraph (1), for sub-paragraph (iii), the following sub-paragraph shall be substituted, namely: - "(iii) equity or equity linked instrument or debt instrument issued by an Indian startup company irrespective of the sector in which the startup company is engaged: Provided that if the investment is in equity instruments, then the sectoral caps, entry routes and attendant conditions shall apply.". [F. No. 1/8/2024-EM] SURBHI JAIN, Jt. Secy. Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O.3732 (E), date....