The RBI has issued guidelines following the FEMA (Non-debt Instruments) (Second Amendment) Rules, 2024, allowing issuance of partly paid units to persons resident outside India by investment vehicles.
Key Points:
Form InVI Filing Requirement:
Investment vehicles issuing units to non-residents must file Form InVI within 30 days of issuance (as per FEMA Reporting Regulations, 2019).
Special One-time Window:
For partly paid units issued before May 21, 2024, filing must be done within 180 days from the date of the circular (i.e., by November 17, 2024).
No late submission fees will apply for such filings within this window.
Ongoing Compliance:
For issuances made on or after May 21, 2024, regular 30-day reporting applies.
These directions are effective immediately, and AD Category-I banks must inform their clients accordingly.
Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement.
