In continuation of its thrust on liberalizing the economy, bringing more funds into India and creating employment, the Central Government has announced key amendments in the FDI policy by Press Release dated 12th November, 2015 followed by Press Note No. 12/2015, dated 24th November, 2015 (“Press Note”)[Please refer detailed coverage of Press Note No. 12/2015 published in our Wiki for December 2015 (Volume No. 17)]
Post issue of the said Press Note, the necessary amendments have been carried in Foreign Exchange Management (Transfer of Issue of Security by a Person Resident Outside India) Regulations, 2000 (Notification No. 20/2000, dated 3rd May, 2000), (“FDI Regulations”) vide Notification No. FEMA 361/2016-RB, dated 15th February, 2016
In continuation of the above, the RBI vide AP (DIR Series) Circular No. 6, dated 20th October, 2016 has advised all the Authorised Dealers to take note of the changes made in the Principal Regulations, inter alia, permitting the Foreign Direct Investment into Limited Liability Partnership Firms under Automatic Route subject to the conditions stated in the Regulations.
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