Swarna Charitable Trust registered on 21.12.2023 engaged in the Educational Sector filed an Application with the RBI seeking approval to invest US$ in a foreign entity in Australia on 10.2.2025. Examine whether the Trust

Any person being a registered Trust or a registered Society engaged in the educational sector or which has set up hospitals in India may make Overseas Direct Investment in a foreign entity with the prior approval of the Reserve Bank, subject to the following conditions, namely:— the foreign entity is engaged in the same sector that the Indian Trust or Society is engaged in; the Trust or the Society, as the case may be, should have been in existence for at least three financial years before the year in which such investment is being made; the trust deed in case of a Trust, and the memorandum of association or rules or bye-laws in case of a Society shall permit the proposed Overseas Direct Investment; such investment have the approval of the trustees in case of a Trust and the governing body or council or managing or executive committee in case of a Society; in case the Trust or the Society require special licence or permission either from the Ministry of Home Affairs, Central Government or from the relevant local authority, as the case may be, the special licence or permission has been obtained and submitted to the designated AD bank. Thus, Swarna Trust will not get approval from RBI to invest in a foreign entity because trust is in existence for less than 3 years.