Author Profile

Legal India News Admin

Posted On by &filed under .


Who are eligible to make overseas direct investment under the Automatic Route? Who is an “Indian Party”?

Who are eligible to make overseas direct investment under the Automatic Route? Who is an “Indian Party”?

An Indian Party is eligible to make overseas direct investment under the Automatic Route. An Indian Party is a company incorporated in India or a body created under an Act of Parliament or a partnership firm registered under the Indian Partnership Act 1932 or a Limited Liability Partnership (LLP) incorporated under the LLP Act, 2008 and any other entity in India as may be notified by the Reserve Bank.

When more than one such company, body or entity makes investment in the foreign JV / WOS, such combination will also form an “Indian Party”.

Direct investment outside India means investments, either under the Automatic Route or the Approval Route, by way of contribution to the capital or subscription to the Memorandum of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase or private placement or through stock exchange, signifying a long-term interest in the foreign entity (JV or WOS).


Leave a Reply

Be the First to Comment!

Notify of
avatar
wpDiscuz