Review of the FDI policy on downstream investments made by Non-Resident Indians (NRI)
News from the desk of Department for Promotion of Industry and Internal Trade (DPIIT)
The DPIIT has reviewed FDI policy dated 15th October, 2020 and has issued the Press Note clarifying its position on the downstream investment made by Indian Entity owned and controlled by Non – Resident Indians (NRI).
At present, the investment made by NRI on a non- repatriation basis as mentioned under schedule IV of Foreign Exchange (Debt Instrument) Rules 2019 are deemed to be domestic investments at par with the investment made by residents. Accordingly, an investment made by Indian entity which is owned and controlled by NRI(s) on a non-repatriation basis shall not be considered for calculation of Indirect Foreign Investment.
Further, the above decision will take effect from the date of FEMA notification.
The complete text of the Bill may be viewed at below link:
https://dipp.gov.in/sites/default/files/pn1-2021.PDF
Last updated: 1/04/2021
Article contributed by:
Senior Associate – Legal
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