RBI to rewrite FEMA notification on foreign investment

The Reserve Bank of India (RBI) is rewriting the 11-year old Foreign Exchange Management Act's (FEMA) notification on foreign investment.

The revised FEMA notification No. 20 will reflect the changes made to the FDI policies over the last 11 years. It will touch on the issue of securities by persons residing overseas. The notification will define control and ownership of an Indian company as in Press Note 2. It will also remove ambiguity on the definition of capital by excluding warrants and partly-paid shares and non-convertible debentures. The new notification will have seven schedules and three annexures.