Mumbai, June 3 (UNI) The Reserve bank of India (RBI) today relaxed its Overseas Direct Investment (ODI) rules to provide greater flexibility to Indian parties for investment abroad.
The Apex bank, in a notification, allowed Indian companies to invest in excess of 400 per cent of their net worth, as on the date of the last audited balance sheet, in the energy and natural resources sectors such as oil, gas, coal and mineral ores.
Such investments shall be made only with the prior approval of the RBI.
With regard to investment in overseas unincorporated entities in Oil Sector, the RBI extended the investment benefits provided to ONGC Videsh Limited and Oil India Limited, to other Indian entities to invest in overseas unincorporated entities in oil sector.
Currently such investments for exploration and drilling for oil and natural gas projects, are duly approved by the Government of India, without any limits, under the automatic route.
RBI said authorised dealer (Category one) banks may allow remittance up to 400 per cent of the net worth of the Indian company, after ensuring that the proposal has been approved by the competent authority and is duly supported by a certified copy of the Board Resolution, approving such investment.
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