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HindustanTimes Wed,01 Oct 2014

Finance ministry clarifies: RBI forex curbs not retrospective

HT Correspondent , Hindustan Times  Mumbai, September 25, 2013
First Published: 00:26 IST(25/9/2013) | Last Updated: 00:28 IST(25/9/2013)

The government on Tuesday clarified that the recent curbs on outward investments by Indian companies will not impact the deals entered by them before August 14, the day the Reserve Bank of India imposed restrictions on overseas investments.

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"It is clarified that all financial commitments made on or before August 14, 2013, in compliance with the earlier limit of 400% of the networth of the Indian Party under the automatic route will continue to be allowed," the finance ministry in a statement.

"In other words, such investments shall not be subject to any unwinding or approval from the RBI.".

The RBI, had, on August 14, reduced the overseas direct investment limit to 100% of a company's networth from 400% for all companies.


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