Rules have been notified in pursuance of the Union Budget 2024-25 announcements to simplify rules and regulations for Foreign Direct Investment (FDI) and Overseas Investment.

• Rules have been notified by the Union Ministry of Finance under the Foreign Exchange Management Act, 1999.

Key highlights of the amended rules

• Cross-border share swaps: Simplifies cross-border share swaps and provide for issue or transfer of Indian company equity instruments in exchange for foreign company equity instruments.
  • It aims to facilitate global expansion of Indian companies through mergers, acquisitions, and other strategic initiatives, enabling them to reach new markets and grow their presence worldwide.
• FDI in White Label ATMs: Allows 100% FDI under Automatic Route in White Label ATMs to boost financial inclusion nationwide.
  • White Label ATMs are ATMs set up, owned, and operated by non-banks.
• Definition of 'Startup Company': Harmonizes definition of ‘Startup Company’ with 2019 notification issued by Department of Industry and Internal Trade.
  • According to 2019 notification, an entity will be considered a Startup -
    • Upto a period of 10 years from the date of incorporation/ registration, if it is incorporated as a private limited company (under Companies Act, 2013) or registered as a partnership firm (under Partnership Act, 1932) or a limited liability partnership.
    • Turnover of the entity for any of the financial years since incorporation/ registration has not exceeded ₹ 100 crore