The term beneficial owner wasn’t defined under the Press Note 3 of 2020, and the FEMA (Non-debt Instruments) Rules, 2019. Hence, there existed a dichotomy in the industry, as to the ownership thresh...
Published On: 04/11/2020
Practice Area: Corporate & Commercial, Government & Regulatory, Private Equity, Venture Capital and Fund Investment
Authors:
Akhoury Winnie Shekhar
Rahul Tiwari
Jaidrath Zaveri
On October 28, 2020, the DPIIT after a gap of 3 long years, unveiled the consolidated FDI Policy, 2020. While it seeks to consolidate the extant FDI regime and replaces the older policies, it does not overwrite the regime established by the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (as amended from time to time). INDUSLAW’s Winnie Shekhar, Rahul Tiwari, and Jaidrath Zaveri point out the noteworthy deviations that the FDI Policy makes over the FEMA Non-Debt Instruments Rules.
