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FEMA

Overseas Direct Investment

Investment made by a person resident in India in a foreign entity through equity, loan, or guarantee. Governed by FEMA (Overseas Investment) Rules 2022. Permitted up to 400% of net worth under automatic route for most entities.

Last updated: 17 May 2026

Frequently Asked Questions

What is Overseas Direct Investment?

Investment made by a person resident in India in a foreign entity through equity, loan, or guarantee. Governed by FEMA (Overseas Investment) Rules 2022. Permitted up to 400% of net worth under automatic route for most entities.

What is the significance of Overseas Direct Investment under FEMA?

Overseas Direct Investment is significant under FEMA because it refers to: Investment made by a person resident in India in a foreign entity through equity, loan, or guarantee. Governed by FEMA (Overseas Investment) Rules 2022. Permitted up to 400% of net worth under automatic route for most entities.

Who does Overseas Direct Investment apply to?

Overseas Direct Investment under FEMA applies to companies, professionals, and individuals involved in FEMA-related compliance and regulatory matters in India. Specifically: Investment made by a person resident in India in a foreign entity through equity, loan, or guarantee. Governed by FEMA (Overseas Investment) Rules 202...

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