New FEMA Guidelines for Foreign Investment in LLPs

The Reserve Bank of India has issued updated Foreign Exchange Management Act (FEMA) guidelines concerning foreign investment in Limited Liability Partnerships (LLPs). The new guidelines clarify permissible sectors, investment routes, and reporting requirements. These changes aim to facilitate foreign investment while maintaining regulatory oversight. LLPs and foreign investors must ensure compliance with the updated framework, including filing requirements and sectoral caps. The guidelines come into effect from the next financial year.