RBI to amend forex management rules

In a move aimed at contributing to the ease of doing business, the Reserve Bank of India on Monday said it proposes to amend the Foreign Exchange Management Regulations to mandate that foreign investment by non-residents on repatriation basis can be made in equity, debt and any other approved securities only in dematerialised form.  Consequently, the depositories, namely, the National Securities Depository (NSDL) and the Central Depository Services (India) (CDSL) would act as the single-point source of data and information on the extent and nature of foreign investments in securities issued by Indian companies, investment vehicles, etc.

The RBI, in a statement, said: “This will facilitate easy and comprehensive availability of information for the Indian company receiving foreign investment as well as for effective monitoring by various regulators and is expected to contribute to the ease of doing business by making regulatory compliance easier for the companies receiving foreign investment and also facilitating regulatory monitoring.”

In this regard, the central bank has invited members of the public, including stakeholders and experts, in the area to offer their views and comments in respect of the proposed changes by May 25. #casansaar (The Hindu Business)