The Finance Ministry issued a notification on Friday amending the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, to simplify FDI regulations and facilitate easier cross-border share swaps between Indian and foreign companies.
According to a Finance Ministry statement, this will support the global expansion of Indian companies through mergers, acquisitions, and other strategic initiatives, helping them access new markets and enhance their global presence. The amendments are designed to simplify cross-border share swaps and allow the issuance or transfer of equity instruments between Indian and foreign companies.
The amendments will also facilitate Foreign Direct Investment (FDI) in White Label ATMs to enhance financial inclusion across the country. White Label ATMs (WLAs) are ATMs set up, owned, and operated by entities other than banks. These non-bank ATM operators are authorized by the Reserve Bank of India (RBI). For customers, using a WLA is similar to using an ATM from any bank.