Round Tripping: Permissible Overseas Investment Structures Under the New Regime

The New Odi Framework Is a Step in The Right Direction as It Provides Much Needed Clarity On the Kind of Structures That Are Permissible from an Overseas Investment Standpoint

Let us start with the basics. What does the term ‘round-tripping’ mean from a regulatory standpoint? The Indian regulatory regime does not offer a definition. The glossary of the 4th Edition of the OECD Benchmark Definition of Foreign Direct Investment defines it as “channelling abroad by direct investors of local funds and the subsequent return of these funds to the local economy in the form of direct investment

Please click here to read the full article by Ajay G Prasad, Soham Roy and Sneha Mohanty, published in Legal Era.