In order to encourage Indian companies to expand their global footprint and showcase entrepreneurial skills, the Reserve Bank today relaxed norms for overseas direct investments.
The regulations relating to overseas direct investments, RBI said in a circular, are being liberalised “with a view to providing more operational flexibility to Indian corporates having investments abroad”.
The modified norms will provide greater freedom to domestic companies like Tatas, Bharti and Reliance to increase their commitments in overseas joint ventures and subsidiaries and also help them repatriate funds without seeking prior approval of the RBI.
“The move is in recognition of entrepreneurial ability of India Inc by the Reserve Bank. It is a welcome step and will help companies grow on a global stage”, said Ashvin Parekh, partner and national leader (financial services) Ernst & Young.
Read RBI Notification: Overseas Direct Investment Liberalisation / Rationalisation
