Amidst the increasing changes in Indian laws to promote the ‘ease of doing business’ in India, we continue to see the swaying mood swings of the Reserve Bank of India (“RBI”) in recent times. The RBI has been notoriously busy and painstakingly conservative lately – and their orthodox approach to foreign exchange regulation comes at the expense of keeping entities from ‘doing business easily’ in India.
As the gatekeeper of money in and out of India, the RBI’s role in relation to foreign direct investment in India (“FDI”) has been to establish the conditions for FDI in India (its own requirements and those set out under the foreign direct investment policy (“FDI Policy”)) and verify compliance with such conditions post-investment. Lately, however, the RBI is expanding its boundaries to cover data protection by legislating upon storage of payment data, stretching its dispute resolution arm by launching the Integrated Ombudsman Scheme and (much to the dismay of the growing entrepreneurship in India) assessing FDI through various lenses in addition to record-keeping.
Please click here to read the full article by Probir Roy Chowdhury and Pranavi Pera, published in Lexology.
Pranavi is a part of JSA’s corporate commercial and technology, media and telecommunication (TMT) practice. Pranavi’s focus areas are Mergers & Acquisitions (M&A), Private Equity (PE) & Venture Capital and General Corporate Commercial.