New Delhi/Mumbai. The Reserve Bank of India (RBI) on Tuesday released draft rules related to simplifying foreign investment and foreign listing of Indian companies.
This draft, which replaces the currently applicable 2019 rules, aims to promote ‘ease of doing business’. RBI has invited public comments and suggestions on this till August 31.
In the released draft, RBI has proposed simple and future-ready rules related to foreign investment. It also includes rules related to foreign listing of Indian companies.
The Reserve Bank has sought suggestions on the draft by August 31, 2026. The central bank said the rules will be finalized after wide consultation.
The Reserve Bank said it has drafted rational rules based on the recommendations of the committee and in consultation with the central government and other relevant parties. RBI said that the main feature of the proposed draft rules is a simple and principles-based framework.
The central bank said that its objective is to rationalize the provisions, bring uniformity in definitions and create a simple regulatory framework to increase clarity and reduce regulatory complexity. Foreign investment in India is currently governed by the Foreign Exchange Management (Non-Debt Products) Rules, 2019.
It is noteworthy that Union Finance Minister Nirmala Sitharaman had announced a comprehensive review of the rules in the Union Budget 2026-27.
Thereafter, changes have been proposed in the Foreign Exchange Management (Non-Debt Products) rules. Following the announcement, the central government had constituted a committee to comprehensively review the existing regulatory framework.
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