New Student Offer - HELLO

Join Here

RBI Relaxed Norms for Overseas Investment Ties for Offshore Funds

Published on June 13, 2024
Current Context: The Reserve Bank of India (RBI) has indeed relaxed the norms for overseas investment on 9th June 2024.
RBI Relaxed Norms for Overseas Investment Ties for Offshore Funds
  • Here are the key points:
    • The RBI has allowed listed Indian companies and resident individuals to invest in offshore funds that are regulated through their fund managers.
    • These investments can be in any instrument, regardless of its form, and in funds set up as limited partnerships, LLCs, VCCs, companies, or trusts.
    • Until now, overseas portfolio investment (OPI) was permitted only if the ‘funds’ were regulated in their home jurisdiction and the investments were in ‘units’ of the funds.
    • The RBI issued a circular on Friday amending the Foreign Exchange Management (Overseas Investment) Directions, 2022, lifting several restrictions.
    • This will re-open the doors for LP investment into Singapore’s Variable Capital Company (VCC) funds as well as funds set up in Delaware, and allow Indian employees of Indian advisory entities to participate in overseas funds.
    • This move is expected to provide more flexibility and opportunities for Indian investors and companies in the global market.

Question:

1 What types of offshore funds can listed Indian companies and resident individuals invest in after the RBI’s new norms?

  • A) Only in funds set up as limited partnerships
  • B) Only in funds set up as LLCs
  • C) In any instrument, regardless of its form, and in funds set up as limited partnerships, LLCs, VCCs, companies, or trusts
  • D) Only in funds set up as trusts 
ebook store

About Me

Ramandeep Singh

Ramandeep Singh - Educator

I'm Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and over 5000 successful selections, I understand the path to success firsthand, having transitioned from Dena Bank and SBI. I'm passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu