Earlier this year, the Reserve Bank of India (RBI) amended schedule VI of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (TISPRO regulations), which govern investments in India by foreign venture capital investors (FVCI) registered with the Securities and Exchange Board of India (SEBI). On 20 October, the RBI issued circular No. 7 to clarify the scope and extent of the amendment.
In the circular, the RBI has clarified that an FVCI, which is registered under the SEBI (Foreign Venture Capital Investor) Regulations, 2000, may invest in equity or equity-linked instruments or debt instruments issued by an unlisted Indian company engaged in any of the following areas without prior RBI approval:
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