Kerala High Court Sets Aside Order Transferring School Playground, Citing Inadequate Consideration  ||  Delhi High Court Directs Removal of Unauthorised Vendors, Declares Nehru Place a No-Vending Zone  ||  Kerala High Court: SHO Cannot Order Surrender of Firearms over Phone Calls Before Elections  ||  Kerala High Court: SHO Cannot Order Surrender of Firearms over Phone Calls Before Elections  ||  Chhattisgarh HC Refuses Bail to Aide of Former Congress Treasurer in ?540 Crore Coal Levy Case  ||  Kerala HC Rejects Plea Against Appointment of VS Achuthanandan’s Son as IHRD Director-In-Charge  ||  Rajasthan HC: Transgender Bill May Make Gender Identity Rights Dependent on State Approval  ||  J&K&L HC: Bail is Not Absolute For Juveniles in Heinous Cases and Can be Denied to Serve Justice  ||  Delhi HC: Expired Driving Licenses Do Not Enjoy Deemed Continuity After 2019 MV Act Amendment  ||  MP High Court: Ex-Gratia Payments are Dependents’ Last Hope and Rules Should be Applied Liberally    

Sponsor contribution to an AIF set up in overseas jurisdiction, including IFSCs- (Reserve Bank of India) (12 May 2021)

MANU/APDR/0010/2021

Banking

1. Attention of AD Category - I banks is invited to paragraph A.3.(e) and B.6 of Master Direction No.15 dated January 1, 2016, on "Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad", as amended from time to time and Regulation 7 of the Notification FEMA 120/2004-RB, pertaining to provisions for an Indian Party (IP) making investment/ financial commitment in an entity engaged in the financial services sector.

2. It has been decided that any sponsor contribution from a sponsor IP to an Alternative Investment Fund (AIF) set up in an overseas jurisdiction, including International Financial Services Centres (IFSCs) in India, as per the laws of the host jurisdiction, will be treated as Overseas Direct Investment (ODI). Accordingly, IP, as defined in regulation 2(k) of the Notification ibid. can set up AIF in overseas jurisdictions, including IFSCs, under the automatic route provided it complies with Regulation 7 of the Notification FEMA 120/2004-RB.

3. All the other provisions under the Notification ibid. shall remain unchanged. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

4. The Master Direction No. 15 dated January 01, 2016, is being updated to reflect the changes.

5. The directions contained in this circular have been issued under section 10 (4) and 11(1) of the FEMA and are without prejudice to permissions/approvals, if any, required under any other law.

Tags : SPONSOR CONTRIBUTION   AIF   OVERSEAS JURISDICTION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved