The Reserve Bank of India (RBI), as part of its efforts to liberalize policies for foreign direct investment, promote the ease of doing business and improve the growth of startups, has amended the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (TISPRO Regulations), through the Foreign Exchange Management (TISPRO) (Seventh Amendment) Regulations, 2016. The amendment deals with the payment of deferred consideration and the escrow mechanism for share transfers involving non-residents.
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