Mostly Cloudy
10°CThu :Mostly Sunny/Wind. High: 18 Low: 8

RBI eases overseas investment norms for Indian corporates

RBI eases overseas investment norms for Indian corporates

Mumbai: Relaxing the recent curbs on the outward investments, Reserve Bank on Wednesday said that a company will be allowed to invest up to 400 percent of its net worth provided it has raised the funds through external commercial borrowings (ECBs).

RBI also clarified that the curbs on capital outflows imposed on August 14 will not apply with retrospective effect.

“It has been decided further to retain the limit of 400 per cent of the net worth of the Indian party for the financial commitments funded by way of eligible ECB raised by the Indian party as per the extant ECB guidelines issued by the RBI from time to time,” said the central bank in clarifications on its last month’s Overseas Direct Investment (ODI) guidelines.

Clarifications on outbound investments comes on a day when RBI Governor D Subbarao demits office after completing five years in office.

Last month, RBI had reduced the overseas direct investment limit to 100 percent of a company’s net worth from 400 per cent for all companies.

However, the restriction was not applicable on public sector firms like Oil India and ONGC Videsh.

The RBI had announced the curbs on ODI in the context of prevailing macro-economic situation.

“It was not the intention of the Reserve Bank of India to restrict bona-fide and genuine overseas direct investment transactions by Indian companies,” it said.

Issuing further clarification on remittance scheme, it said it can be used to acquire both listed and unlisted shares of an overseas company.

Resident individuals are permitted to make remittances for acquiring immovable property within the annual limit of USD 75,000 for already contracted cases before August 14, it said.

 

Top Stories

bjp-lost-17-seats-in-haryana-by-a-narrow-margin

BJP lost 17 seats in Haryana by a thin edge

October-22-2014
NEW DELHI: The BJP’s triumph in Haryana can’t simply be surveyed through the quantity of seats the gathering won additionally by the
44895643.cms

Sunny Leone’s Special Birthday surprise For Husband Daniel Weber

October-21-2014
Sunny Leone had masterminded an unique birthday festival for her spouse Daniel Weber in Thailand. A couple of days prior, Daniel had
IndiaTv1611f0_cfc

ISL mentors among a few peering toward India work

October-21-2014
PANAJI: There is life past the commotion and fervor of the Indian Super group, particularly for the mentors on obligation. Most mentors
06-rupee6

Rupee picks up 8 paise against dollar in early trade

October-21-2014
MUMBAI: Extending its climbing streak for the third straight day, the rupee increased in value by 8 paise to 61.28 against the
IndiaTv568462_akhilesh

Akhilesh Yadav the CM of UP gets feel of power crisis

October-21-2014
Lucknow: Uttar Pradesh Chief Minister Akhilesh Yadav and his bureau got a direct knowledge of the dismal force situation in the state
BJP flag

Maharashtra: Congress hits once more at NCP, says will never help Shiv Sena

October-21-2014
New Delhi: Senior Congress pioneer Ajay Maken hit over at National Congress Party boss Sharad Pawar by saying that the gathering will