Draft framework for according approval to Indian Party investing in overseas Startups through an Overseas Technology Fund under the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 (as amended from time to time) - RBI - Reserve Bank of India
Draft framework for according approval to Indian Party investing in overseas Startups through an Overseas Technology Fund under the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004 (as amended from time to time)
Reserve Bank has been receiving references from various Indian parties to invest in Overseas Technology Funds which in turn will further invest in overseas technology startups. Such proposals generally do not meet the eligibility norms for making the overseas direct investment under the automatic route in terms of Regulation 6 or 7 of Notification No FEMA 120 dated July 07, 2004, as amended from time to time. It is proposed that the Reserve Bank will deal with such requests under the approval route in terms of Regulation 9 of the Notification ibid, which enables an Indian party to seek prior approval if they do not satisfy the eligibility norms for automatic route. The proposed framework for considering such proposals will lay down the eligibility criteria as at ‘A’ for according a onetime approval to invest in overseas Technology Fund subject to terms prescribed at ‘B’ A. Eligibility for Indian party Investment in Overseas Technology Fund
B. Investment by Indian party in overseas Technology Fund – Conditions for one time approval
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Page Last Updated on: September 12, 2023