TIOL-DDT 598 · Monday, 23 April 2007 · story 8 of 9

Overseas Direct Investment - Changes

The RBI has issued revised instructions regarding the law governing overseas investments.

i) Investment by swap or exchange will now be accepted as a mode of direct investment.

ii) Pledge of shares to an overseas lender is permitted provided the lender is regulated and supervised as a bank and the amount is within the limit stipulated by the RBI.