The Government is considering changes to India’s foreign direct investment (FDI) framework that could simplify downstream investments by foreign-owned or foreign-controlled Indian entities.
Commenting on the proposed changes, Counsel Paul Albert said:
“One of the key concerns under the FEMA (Non-Debt Instrument) Rules, 2019, is the lack of clarity on the applicable rules in the event of an acquisition of shares by a FOCC, which has been subject to varying interpretations by AD banks with respect to the applicability of the pricing guidelines and reporting guidelines. The draft rules expressly address acquisitions by foreign-controlled entities and clarify the applicability of pricing guidelines to such transactions. However, clarity is still awaited on reporting requirements applicable to these deals. Once the reporting framework is clarified, the changes could bring greater certainty to investors and reduce compliance-related friction in executing transactions.”
Read the full story here: RBI Draft FDI Rules 2026 May Ease Downstream Investments By Foreign Entities – BW Businessworld