The Reserve Bank of India has put forward draft rules to create a single framework for overseas investments in Indian equity instruments. The new norms are designed to replace the current set of regulations on foreign fund flows.
The proposed framework clarifies which entities qualify for investment and provides clear definitions for foreign-controlled companies. It maintains the existing separation between direct investments and portfolio investments.
The changes aim to simplify processes for bringing foreign capital into Indian markets. Officials said the rules would update the Foreign Exchange Management framework for 2026.
The draft norms were released for public consultation as part of efforts to streamline regulatory requirements.