FEMA Amendment

The Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2024 introduce key changes including the alignment of "control" definitions with the Companies Act, 2013, clarified definitions for "startup companies," and mandatory government approval for certain equity transfers.

The amendments facilitate equity swaps between Indian and foreign entities, simplify indirect foreign investment calculations, and permit 100% FDI in White Label ATM Operations.

Additionally, the rules allow broader foreign investment in startups and streamline foreign portfolio investment processes. These changes aim to enhance clarity, flexibility, and compliance in foreign investments in India.
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