India's RBI, SEBI Tighten Checks After 10 Overseas Investment Queries as Rupee Pressure Mounts
Updated
Updated · Reuters · Jun 3
India's RBI, SEBI Tighten Checks After 10 Overseas Investment Queries as Rupee Pressure Mounts
3 articles · Updated · Reuters · Jun 3
Summary
At least 10 RBI queries in the past three weeks have probed overseas investments by firms and Family offices, marking a rare compliance push alongside SEBI's slower no-objection clearances.
Regulators are examining opaque structures, inflated offshore asset valuations and cases where the ODI route may have been used for private wealth management rather than genuine business expansion.
Family offices are a key focus because corporate structures can access higher ODI remittance limits than the $250,000 annual cap for individuals under India's Liberalised Remittance Scheme.
The tighter scrutiny comes as the rupee faces pressure from higher oil prices and foreign outflows; overseas direct investment rose 11% to $48.39 billion in 2025-26, while individual remittances reached $28.9 billion.
Officials and advisers described the move as calibrated oversight to slow potentially non-essential capital outflows, not a rollback of legitimate overseas expansion by Indian companies.