RBI liberalises investments in overseas funds

The RBI issued a circular easing rules for Indian investors in overseas funds. Previously restrictive, the circular now allows Indian Limited Partners (LPs) to invest in overseas funds managed by regulated investment managers, not just those directly regulated by the host country's financial regulator. It broadens investment avenues beyond units to include other instruments issued by overseas funds like shares or partnerships. This amendment aims to clarify and simplify the investment process, benefiting Indian residents and companies seeking to participate in offshore investment opportunities, particularly in vehicles like LPs, GPs of PE/VC funds, and corporate entities globally.