RBI releases draft rules expanding foreign investment coverage in India
The Reserve Bank of India (RBI) just dropped draft rules that could change how foreign money flows into Indian companies.
These new guidelines, set to replace the old 2019 ones, would cover not just regular companies but also LLPs and big investment vehicles like REITs, InvITs, AIFs, and mutual funds with heavy equity stakes.
Draft clarifies FDI and FPI thresholds
The draft spells out who can invest, what counts as a "foreign-controlled entity," and keeps the difference clear between foreign direct investment (FDI, 10% or more) and foreign portfolio investment (FPI, less than 10%).
It also tightens up how shares are valued and sets rules for overseas listings (especially if there's an investigation involved).
Basically, RBI's aiming for more clarity and transparency in how global investors put their money into India.