RBI clarifies on ODIs

The Reserve Bank of India (RBI) has observed Indian parties were using the Overseas Direct Investments (ODI) as an automatic route to set up structures facilitating trading in currencies, securities and commodities. Such structures, with equity participation of Indian parties, have also started offering financial products linked to the rupee. The central bank has clarified any foreign entity, with equity participation directly/indirectly, shall not offer such products without its approval.