What is the 'Mode of Payment' by a person resident in India for making Overseas Direct Investment as per Foreign Exchange Management (Overseas Investment) Rules, 2022 ?
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2024
What is the 'Mode of Payment' by a person resident in India for making Overseas Direct Investment as per Foreign Exchange Management (Overseas Investment) Rules, 2022 ?
Answer & Explanation:
A person resident in India making Overseas Direct Investment may make payment: By remittance made through banking channels; From funds held in an account maintained in accordance with the provisions of the Foreign Exchange Management Act; By swap of securities; By using the proceeds of American Depository Receipts or Global Depository Receipts or stock swap of such receipts or external commercial borrowings raised in accordance with the provisions of the Act and the rules and regulations made thereunder for making ODI or financial commitment by way of debt by an Indian entity.
Topics: Economic Laws
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