RBI Relaxes norms for foreign Investment, As per the amendment, FCVIs will not require any permission to invest in equity or equity linked investment or debt investment,  which is not issued by Indian sector whose shares are not listed.

Central Bank said that “Foreign Venture Capital Investors (FVCI) can invest in Indian startups without any permission of the RBI.”

FVCI has also given the permission to invest in unlisted firms in sectors like biotechnology, nanotechnology and dairy firms without taking the permission of RBI

It also said that without taking the permission of RBI, “FVCI can Invest in equity or equity linked instrument or debt instrument and can invest in the sector where Start up is required.

In order to further liberalize and rationalize the Investment authority for FVCIs and to increase the increase the foreign investment RBI has reviewed extant regulatory provisions.

As per the amendment, FCVIs will not require any permission to invest in equity or equity linked investment or debt investment which is not issued by Indian sector whose shares are not listed.

The sectors which are included are Biotechnology, IT related to hardware and software development, Nanotechnology, seed research and development, research and development in pharmaceutical sectors, production of bio-fuels, dairy and poultry, hotel-convention centre and infrastructure.

For help FVCIs can open a foreign currency account or a rupee account for a smooth transaction.

Also there will be no restriction in the transfer of capital investment held by FVCIs to any person who is resident of India or leaving outside India.

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