Question

An Indian entity is allowed to invest up to _____ of its net worth in overseas portfolio investment.

A 30% Correct Answer Incorrect Answer
B 40% Correct Answer Incorrect Answer
C 50% Correct Answer Incorrect Answer
D 60% Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Finance Ministry has notified new rules and regulations for overseas investment. An Indian entity can make investment up to four times of net worth in a foreign entity. It is allowed to invest up to 50% of its net worth in overseas portfolio investment. As per Foreign Exchange Management (Overseas Investment) Rules 2022, an Indian entity may make Overseas Direct Investment (ODI).

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