Tax alert: Cross border share swaps simplified has been saved
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Tax alert: Cross border share swaps simplified
22 August 2024
On 16 August 2024, the Ministry of Finance, notified the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2024, amending certain provisions of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (‘FEMA NDI Rules’) which govern FDI norms in India and has now relaxed cross border share swap provisions thereby allowing issue or transfer of equity instruments of Indian company in exchange for foreign company equity capital, which was earlier permitted only with the prior approval of the Reserve Bank of India (RBI).
