RBI to begin talk on ODI(Overseas Direct Investments Regime) Norms soon

The rules for investing overseas could become easier for Indian enterpreneurs and angel investors as RBI will begin a consultation process for changes soon said to people with direct knowledge of the matter.

The focus of these consultations will be around a particular regulation of ODI overseas direct investment regime which says if an Indian resident buys share in an unlisted company overseas the target company cannot create any more subsidiaries abroad the people cited above said.  The development comes as the RBI had received several representations from former startup founders and angel investor to ease these norms according to market participants several lucrative overseas buying opportunity keep coming up for these investors and due to RBI curb scalability of such companies has become an issue.

RBI has responded to our queries saying it will hold consultations with the industry to understand the issue and also what the industry expects say the lawyer representing a large startup founder Indian entrepreneurs are losing out on good investment opportunities due to rules becoming scalable companies need freedom to set up and expand where ever there is a good market. S-ET

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