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Master Circular on Direct Investment in JV/WOS Abroad

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/11 · issued 17 Jun 2014 · ~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 compliance. Valid until July 1, 2014, then replaced.

What changed

This Master Circular consolidates all existing instructions on direct investment by residents in Joint Ventures (JV) and Wholly Owned Subsidiaries (WOS) abroad into a single document. It includes amendments up to June 17, 2014, and replaces earlier circulars. The circular has a sunset clause of one year, expiring on July 1, 2014.

What it means for you

Banks and AD Category-I banks now have a single reference for overseas investment rules, simplifying compliance. The sunset clause means banks must prepare for an updated circular after July 1, 2014. Key areas like automatic route, funding, and post-investment changes remain unchanged but are now easier to access.

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

Who it affects

All Authorised Dealer Category-I banks, Indian residents investing in JV/WOS abroad, Proprietorship concerns and trusts making overseas investments

❓ Common questions

Regulatory timeline

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 circular?

The circular will stand withdrawn on July 1, 2014, and be replaced by an updated Master Circular on the subject.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/11 Master Circular No.11/2013-14 (Amended up to June 17, 2014) July 01, 2013 To, All Authorised Dealer Category - I banks 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 Notification No. FEMA.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 may be referred to for general guidance. The Authorised Dealer Category – I banks and Authorised banks may refer to respective circulars / notifications for detailed information, if so needed. 4. This Master Circular is issued with a sunset clause of one year. This circular will stand withdrawn on July 01, 2014 and be replaced by an updated Master Circular on the subject. Yours faithfully, (C. D. Srinivasan) Chief General Manager INDEX
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/11 · issued 17 Jun 2014. 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=8100&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.
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