The Finance Ministry has amended Foreign Exchange Management (Non-debt Instruments) Rules, 2019 on Friday attempting to simplify regulations for Foreign Direct Investment and Overseas Investment.
The amendments allow cross-border share swaps and provide for the issue or transfer of Indian company equity instruments in exchange for foreign firms’ equity instruments. “Other amendments include standardising the definition of ‘control’ to ensure consistency with other Acts and enabling white label ATMs to boost financial inclusion nationwide, the Ministry said in a release, adding the aim is to enable “global expansion of Indian companies through mergers, acquisitions, and other strategic initiatives, enabling them to reach new markets and grow their presence worldwide.”
