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Medium ImpactFEMA & RBI

RBI Liberalised Remittance Scheme (LRS) and Overseas Investment Rules Update

Reserve Bank of India has updated the Overseas Investment framework, revising reporting requirements for Indian entities making overseas direct investments and clarifying round-tripping norms.

Published: March 28, 2026Effective: May 1, 2026

Reserve Bank of India has updated the Overseas Investment framework with significant changes.


Key Changes:


1. Revised Reporting Requirements: Updated Form ODI filing timelines for Indian entities making overseas direct investments.

2. Round-Tripping Norms: Clarified norms to prevent circular investment structures.

3. Repatriation of Profits: Foreign companies repatriating profits from Indian subsidiaries must comply with revised filing requirements.

**Effective Date**: May 1, 2026


Action Items:


  • Review current overseas investment structures
  • Update Form ODI filing procedures
  • Ensure compliance with round-tripping norms

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