Among others, it has been clarified that in respect of funding of overseas direct investments by way of External Commercial Borrowings, instead of limit of 100 per cent of the net worth, the earlier limit of 400 per cent of the net worth will continue to apply.

It may be noted that Reserve Bank of India had announced the revised guidelines for overseas direct investment by Indian parties on August 14, 2013. This measure had been taken in the context of current macro-economic situation.

"It was not the intention of the Reserve Bank of India to restrict bona-fide and genuine overseas direct investment transactions by Indian companies," the RBI has stated in a release.

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