RBI EASES OVERSEAS INVESTMENT NORMS

Listed companies will be allowed to write off 25 percent capital, loans and other receivables such as royalty and management fee of their JVs and wholly-owned subsidiaries through the automatic route. Unlisted companies have also been allowed this write off, but will have to seek permission. In case of JVs, the Indian promoters should own at least 51 per cent. Existing regulations allow restructuring of balance sheets only for winding up of JVs and wholly-owned subsidiaries abroad.