GK and monthly revision

RBI plans unified code for foreign investment in equity instruments

The Reserve Bank of India (RBI) has proposed new regulations aimed at streamlining foreign investment in equity instruments, which will replace the existing framework. This initiative is significant as it clarifies the definitions of eligible entities and foreign-controlled entities, while maintaining the distinction between direct and portfolio investments. The move is expected to enhance transparency and facilitate smoother overseas fund flows into Indian markets, thereby boosting investor confidence.