Recent modifications to Indian tax regulations that affect foreign investments

Under the present overseas investment regime an Indian resident can make an overseas investment overseas under the Liberalized Remittance Scheme (‘LRS’), wherein investment upto USD 2,50,000 can be made in overseas listed and unlisted companies or under the Overseas Direct Investments (ODI) regime where investments can be made through an Indian company in overseas entities as equity investments, loans or guarantees depending on the business needs of the foreign investee entity. Equity shares can also be acquired under a private arrangement or from the market through stock exchanges.

Please click here to read the full article by Kumarmanglam Vijay and Divyam Mittal, published in Financial Express.