Foreign Exchange Management (Non-debt Instruments) (Amendment) Rules, 2026

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....26.     (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, - (a) in rule 2, in clause (6), for the words "government approval", the words "Government approval" shall be substituted; (b) in rule 6, for clause (a), the following clause shall be substituted, namely: - '(a) may subscribe, purchase or sell equity instruments of an Indian company in the manner and subject to the terms and conditions as specified in Schedule I: Provided that - (i) an entity or a citizen of a country, which shares land border with India, or where the beneficial owner of an investment into India is a citizen....

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.... the expression "beneficial owner of an investment into India" shall mean the beneficial owner of the investor entity incorporated or registered in a country other than a country which shares land border with India; and (ii) the expression "beneficial owner" shall have the same meaning as assigned to it in clause (fa) of sub-section (1) of section 2 of the Prevention of Money-laundering Act, 2002 (15 of 2003), and shall be determined as per the criteria specified under sub-rule (3) of rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, made under the said Act. Explanation 2. -The beneficial ownership of the investment shall be construed to be vested in a country sharing land border with India....