The Central Government announced key amendments to Foreign Exchange Management (Non-debt Instruments) Rules, 2019, which will come into effect from 16 August 2024 . The principal objective of the Amendment Rules is to simplify cross-border equity share swaps and provide for the issue/transfer of equity instruments of Indian companies in exchange for the equity instruments of foreign companies. Other changes under the purview of the Amendment Rules include amending the definitions of ‘start-ups’ and ‘control’ to align them with the definitions under other laws and permitting 100% FDI through the automatic route in White Label ATM operations.
