What are the conditions for Indian party to make investment in overseas joint venture or wholly owned subsidiaries ?

An Indian Party has been permitted to make investment / undertake financial commitment in overseas Ventures (JV) / Wholly Owned Subsidiaries (WOS), as per the ceiling prescribed by the Reserve from time to time. The total financial commitment of the Indian Party in all the Joint Ventures / Wholly Owned Subsidiaries shall comprise of the following: 100% of the amount of equity shares and/or Compulsorily Convertible Preference Shares (CCPS); 100% of the amount of other preference shares; 100% of the amount of loan; 100% of the amount of guarantee (other than performance guarantee) issued by the Indian Party; 100% of the amount of bank guarantee issued by a resident bank on behalf of JV or WOS of the India Party provided the bank guarantee is backed by a counter guarantee/collateral by the Indian Party; 50% of the amount of performance guarantee issued by the Indian Party provided that if the outflow on account of invocation of performance guarantee results in the breach of the limit of financial commitment in force, prior permission of the Reserve Bank is to be obtained before executing remittance beyond the limit prescribed for the financial commitment; Funding for Overseas Direct Investment can be made by one or more of the permissible sources.