The RBI Second Amendment removes certain restrictions regarding LLP activities.
On 3 March 2017, the Reserve Bank of India notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2017 (RBI Second Amendment).
The RBI Second Amendment came into force with effect from 3 March 2017, the date of its publication in the Official Gazette of India. The RBI Second Amendment introduces amendments to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (FEMA 20) with respect to foreign direct investment (FDI) in limited liability partnerships (LLPs) formed and registered under the Limited Liability Partnership Act, 2008.
The RBI Second Amendment amends Regulation 5(9) and substitutes Schedule 9 of FEMA 20. The new Schedule 9 sets out the conditions for foreign investment in LLPs. Key changes triggered by the RBI Second Amendment include the following:
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