The Ministry of Finance has notified Foreign Exchange Management (Non debt Instruments) (Amendment) Rules, 2021 on August 6, 2021. The Foreign Exchange Management (Non-debt Instruments) Rules, 2019 has been amended to introduce an explanation under Rule 23(7)(i) which states that an investment made by an Indian entity which is owned and controlled by NRI(s), on a non-repatriation basis, shall not be considered for calculation of indirect foreign investment.
*Tanvi Singh, Editorial Assistant has reported this brief.