Overview

The investment by way of acquisition of unlisted equity capital of a foreign entity, subscription as a part of the memorandum of association of a foreign entity, investment in ten per cent or more of the paid-up equity capital of a listed foreign entity or investment with control where investment is less than ten per cent of the paid-up equity capital of a listed foreign entity, is know as ‘Overseas Investment’ or (‘OI’).

An investment, other than ODI, in foreign securities, but not in any unlisted debt instruments or any security issued by a person resident in India who is not in an IFSC is known as ‘Overseas Portfolio Investment’ or (‘OPI’).

 

Such overseas investments by Indian entity or resident individual in foreign entity are governed by Foreign Exchange Management (Overseas Investment) Rules, Foreign Exchange Management (Overseas Investment) Regulations, Foreign Exchange Management (Overseas Investment) Directions 2022.

We, at Axis Bank cater to your need for global imprint and scaling up your business opportunities and operations across the globe, offer an end-to-end solution and customer centric approach at each stage, to cater such investments are in compliance with regulation and are available at best commercial proposition.

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Features &
Benefits

Features & Benefits

  • Categories of Overseas Investments as per Regulations :
  • imgInvestment by way of contribution to the capital of a Foreign Entity.
  • imgSubscription to the Memorandum of Association of a Foreign Entity
  • imgBy way of purchase of existing shares of a foreign entity either by market purchase or private placement or through stock exchange.
  • imgAcquisition by way of rights issue of allotment of bonus shares
  • imgSwap of securities, merger, demerger, amalgamation or any scheme of arrangement as per applicable laws.
  • imgLoans and Guarantees to Foreign Entity/Stepdown subsidiaries.
  • imgInvestments by a resident individuals (RI) under the Liberalized Remittance Scheme (LRS).


  • Benefits of Banking with us :
  • imgDedicated & experienced product expert to assist in advisory, solutioning and resolution of issues.
  • imgAssistance in completion of documents.
  • imgAssisstance in arrangement of approvals from regulatory authorities.
  • imgIssuance of No Objection Certificate for creation of charge on assets.
  • imgAssist in submission of Annual Performance Reports (APR)
  • imgFunding to Foreign Entities through our overseas /GIFT city branches.

How it works?

Investments are categorized into permissible and prohibited mode. Investments which are classified into permissible mode can be processed by following routes :

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Automatic route: By this route, OI is allowed without obtaining prior approval by RBI, if it complies with all the parameters mentioned in the regulations.
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RBI Approval route: In this scenario, prior approval from RBI is required for undertaking OI transactions. These are mainly where there is lapse in compliance of parameters mentioned in the regulations.

Modes through which an overseas investment can be made-

The amount of consideration shall be paid as outward remittance to abroad through banking channels; from funds held in an account maintained in accordance with the provisions of the Act.


Steps for smooth processing of the transaction :

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Advisory/Solutioning at Pre-deal Stage
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Simplified documentation.
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Centralization of remittance process to facilitate faster TAT in processing the transaction.
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Help in seamless reporting of various forms as per regulatory requirements (Form FC, Form OPI, Form APR, etc).
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Fee &
Charges

Fee & Charges

SOC – Capital Account Transaction

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Eligibility &
Documentation

Eligibility & Documentation

Please reach out to your nearest branch or contact your relationship manager for further information.

 

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Disclaimer:

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion.