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In line with the Finance Minister's Budget announcement on simplifying India's foreign investment framework, the Reserve Bank of India (‘RBI’) has, on 21 July 2026, released the draft Foreign Exchange Management (Foreign Investment) Rules, 2026 (‘Draft FI Rules’) for public consultation. The Draft FI Rules propose to replace the existing Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (‘NDI Rules’) with an aim to create a streamlined, principle-based framework governing foreign investment in the equity instruments of eligible Indian entities.
This Alert summarizes the key changes introduced pursuant to the introduction of the Draft FI Rules.