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Master Circular on Direct Investment Abroad (JV/WOS)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2011-12/11 · issued 23 May 2012 · ~1 min read

Quick answerRBI consolidated rules for residents investing in overseas JVs/WOS under FEMA. Covers automatic route, funding methods, post-investment changes, and AD bank operational instructions. Valid until July 1, 2012, with sunset clause.

What changed

This Master Circular No.11/2011-12 consolidates all existing instructions on direct investment by residents in JVs/WOS abroad into a single document, issued under FEMA Notification 120/RB-2004, effective July 1, 2011, with a sunset clause of one year.

What it means for you

Banks must ensure all overseas direct investment transactions comply with the consolidated guidelines, including automatic route limits, funding methods, and reporting requirements. The circular clarifies obligations for Indian entities and authorized dealer banks, impacting compliance and operational processes.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review and implement the consolidated instructions for processing overseas direct investment applications.
Ensure designated branches handle investments as per Part II operational instructions, including those under Regulations 6, 9, and 11 of FEMA 120/2004-RB.
Verify evidence of investment and allot Unique Identification Numbers (UIN) for each JV/WOS.
Monitor post-investment changes, including additional investments and restructuring, as per the circular.
Prepare for the sunset clause by planning for the updated Master Circular expected after July 1, 2012.

Who it affects

All banks authorized to deal in foreign exchange, Indian residents investing in overseas JVs/WOS, Authorized dealer banks handling foreign remittances, Compliance and forex departments of banks

❓ Common questions

Regulatory timeline

Stated effective date effective July 1, 2011
Decoded by BankPulse 2026-06-19 00:43 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the sunset clause in this Master Circular?

The circular is valid for one year from July 1, 2011, and will stand withdrawn on July 1, 2012, to be replaced by an updated version.

Which FEMA notification governs direct investment abroad?

The Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, under FEMA Notification 120/RB-2004 dated July 7, 2004.

What are the key sections for authorized dealer banks?

Part II provides operational instructions, including designated branches, procedural guidelines, allotment of UIN, and verification of investment evidence.

📜 Read the original circular — full text as issued by RBI

RBI/2011-12/11 
 Master Circular No.11/2011-12 
 (Updated as on May 23, 2012) 
 July 1, 2011 
 To,
 All Banks Authorised to Deal in Foreign Exchange
 Madam / Sir,
 Master Circular on Direct Investment by Residents in Joint Venture (JV) / 
 Wholly Owned Subsidiary (WOS) Abroad 
 Direct investments by residents in Joint Venture (JV) and Wholly Owned Subsidiary (WOS) abroad are being allowed, in terms of clause (a) of sub-section (3) of section 6 of the Foreign Exchange Management Act 1999, (42 of 1999) read with FEMA Notification 120/RB-2004 dated July 7, 2004 , (GSR 757 (E) dated November 19, 2004), viz. Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, as amended from time to time.
 2. This Master Circular consolidates the existing instructions on the subject of “Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad" at one place. The list of underlying circulars/notifications is furnished in the Appendix.
 3. This Master Circular is issued with a sunset clause of one year. This circular will stand withdrawn on July 01, 2012 and be replaced by an updated Master Circular on the subject.
 Yours faithfully
 ( Dr. Sujatha Elizabeth Prasad) 
 Chief General Manager 
 INDEX 
 PART - I

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/11 · issued 23 May 2012. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6532&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.