Draft foreign investment rules overhaul: what it means for subsidiaries
Summary
RBI published draft FEMA (Foreign Investment) Rules, 2026 on 21 July to replace the NDI Rules, 2019, with comments closing 31 August. I could not confirm a final notification as of 22 October.
Key points
- 10%+ equity is FDI; below is portfolio
- Unlisted share pricing by an accepted method, certified by a CA, merchant banker or cost accountant
- Rights and bonus issues that leave shareholding unchanged are exempt from pricing rules
- Reporting to be set by RBI; FC-GPR impact to be confirmed
For Korean companiesToday's incorporations follow the current NDI Rules and FC-GPR; re-check forms and deadlines once the final rules are notified.