The Gujarat Branch of the Indo-American Chamber of Commerce (IACC), the preeminent chamber focused on strengthening relations between India and the US, hosted an insightful session on FEMA and New ODI (Overseas Direct Investment) Guidelines in association with HSBC recently.
Suhas Bendre, Senior Vice President of Regulatory Reporting Services at HSBC India, was the speaker at the session and shared his insights into the recent changes in rules & regulations in FEMA and ODI guidelines.
Speaking on the occasion, Kshitij Patel, Chairman of IACC Gujarat Branch, said, “The central government and RBI have made significant changes to FEMA and ODI guidelines. Many of the changes are of significant interest to our members. We are thankful to Mr Suhas Bendre for sharing his deep insights on the issue with our members and explaining the nitty gritty of the changes to them.”
“A lot of changes have been introduced in the ODI framework to simplify it and liberalise it. The revised guidelines provide greater clarity on the regulation of outbound investments undertaken by Indian entities. The guidelines have expanded the meaning of the term foreign entity, made changes in how the net worth is calculated, opened up investments in the financial services sector by Indian entities not engaged in the sector, permitted acquisition by way of deferred consideration, and many more,” Mr Bendre further said.
He also shed light on other changes in the guidelines including enabling provisions for pre-incorporation expenses of up to 1 lakh US dollars, allowing ODI-FDI structures up to two layers under general permission, introducing of control definition, and others