Non-Debt Instruments -The New Rules for Foreign Flows

Bloomberg Quint | Dec 8, 2019 at 11:02 AM
  • In a quiet mid-October surprise, nearly four-and-a-half years after the passage of the Finance Act 2015, the government notified the effective date for implementation of the clauses that amended Section 6 of the Foreign Exchange Management Act, 1999.
  • The default aggregate FPI limit beginning next fiscal year is being fixed at the sectoral cap, which, before the onset of the revised system can be reduced to 24/49/74 percent, as deemed fit, through the procedure of resolutions as extant.
  • Incidentally, the Foreign Contribution (Regulation) Act 2010 governs foreign contribution received by trusts, and as this act is administered by the Ministry of Home Affairs, some element of overlap/control is bound to happen.