Select changes in RBI’s latest Overseas Direct Investment (ODI) Regulations

Rule New Regulation Previous Regulation
‘Round tripping’ rules Allowed if the foreign entity has less than two layers of subsidiaries No automatic approval if there was any investment in an Indian company
Concept of Overseas Portfolio Investment (OPI) Clear definition of OPI , allowing OPI in both listed and unlisted space Unlisted companies not allowed to make OPI
Investment in Financial Services entities Investment Entity not engaged in financial services activity in India is now allowed to make ODI subject to conditions Only regulated entities in financial service allowed, with approval of the regulator in India.
Concept of Foreign Entity Concept of foreign entity introduced which comprise of entities with limited liability, formed or registered or incorporated outside India or in an IFSC, and of unincorporated entities with core activities in strategic sector. Investments limited to Joint Ventures and Wholly Owned Subsidary