Investment by non-resident Indians (NRIs) on non-repatriation basis in an Indian company will be treated as domestic investment for the purpose of calculating indirect overseas inflows, according to a DPIIT press note.
The Department for Promotion of Industry and Internal Trade (DPIIT) said that the government has reviewed the FDI (foreign direct investment) policy in relation to investments made by an Indian company owned and controlled by non-resident Indians (NRIs) on a non-repatriation basis.
In order to provide a clarity on downstream investments made by NRIs, a clause has been added in the FDI policy.
The clause was added in the guidelines for calculation of direct and indirect foreign investments.
It said that “investments by non-resident Indians (NRIs) on a non-repatriation basis” as stipulated under a schedule of Foreign Exchange Management (non-debt instruments) Rules 2019 “are deemed to be domestic investments at par with the investments made by residents”.
“AccordinglyInvestment by non-resident Indians (NRIs) on non-repatriation basis in an Indian company will be treated as domestic investment for the purpose of calculating indirect overseas inflows, according to a DPIIT press note.
The Department for Promotion of Industry and Internal Trade (DPIIT) said that the government has reviewed the FDI (foreign direct investment) policy in relation to investments made by an Indian company owned and controlled by non-resident Indians (NRIs) on a non-repatriation basis.
In order to provide a clarity on downstream investments made by NRIs, a clause has been added in the FDI policy.
The clause was added in the guidelines for calculation of direct and indirect foreign investments.
It said that “investments by non-resident Indians (NRIs) on a non-repatriation basis” as stipulated under a schedule of Foreign Exchange Management (non-debt instruments) Rules 2019 “are deemed to be domestic investments at par with the investments made by residents”.
“AccordinglyRead More