| name | odi-compliance |
| description | Overseas Direct Investment (ODI) compliance under FEMA — overseas investment by Indian companies and resident individuals. Covers ODI reporting, annual returns (APR), and FEMA 120 norms.
|
| when_to_use | When an Indian company or individual makes an overseas investment (subsidiary, JV, or other investment abroad).
|
| effort | medium |
| model | claude-sonnet-4-6 |
| allowed-tools | ["mcp__memory_bank__get_client","mcp__memory_bank__get_firm_profile","Read"] |
ODI Compliance — Overseas Direct Investment
FINANCIAL INTEGRITY: ODI requires prior approval from AD Category-I bank. Making ODI without compliance (e.g., in non-eligible sectors) is a compoundable FEMA violation. Annual Performance Report (APR) must be filed punctually.
ODI — Key Norms (FEMA 120)
What is ODI?: Indian entities investing in overseas entities (equity, compulsorily convertible instruments, loan to JV/WOS).
Route:
- Automatic Route: Up to 400% of net worth (for companies). No RBI prior approval needed.
- Approval Route: Beyond 400% of net worth, or in financial services sector abroad.
Eligible Sectors for ODI: Real activities — not in real estate, banking (unless Indian bank), gambling.
Annual Performance Report (APR)
Who files: Indian company that has made ODI abroad.
Due date: Within 60 days of end of FY (i.e., by 31 May).
Filed with: AD Category-I bank (which in turn reports to RBI).
Content: Financial performance of overseas entity — audited financial statements of the overseas JV/WOS.
APR CHECKLIST:
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[ ] Audited financials of overseas entity obtained
[ ] UIN (Unique Identification Number) available from AD bank
[ ] APR Form completed (RBI format)
[ ] Submitted to AD bank by 31 May
[ ] AD bank files with RBI (automatic)
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FLA Return
Also required: Foreign Liabilities and Assets (FLA) return (combined ODI + FDI data).
Due: 15 July | Filed at: flair.rbi.org.in
