Recent amendments to India's Foreign Exchange Management Act introduce simplified reporting requirements for foreign-owned companies and revised thresholds for overseas investments.
The Reserve Bank of India has notified amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, introducing several changes relevant to foreign-owned businesses and expatriate investors operating in India.
Summary of key changes
- Simplified FC-GPR reporting: The time window for reporting foreign capital inflows has been extended from 30 to 60 days.
- Revised thresholds: The threshold for automatic approval of foreign investment in certain sectors has been revised upward.
- Downstream investment clarity: New guidelines provide greater clarity on downstream investment by foreign-owned Indian entities.
EBC will be hosting a dedicated compliance masterclass covering these amendments in the coming weeks. Members will receive priority invitations.