Sponsor Contribution to an overseas AIF shall qualify as ODI

The Reserve Bank of India through circular dated May 12, 2021 has amended the Master Direction on Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad. Any sponsor contribution from a sponsor IP to an Alternative Investment Fund (AIF) set up in an overseas jurisdiction, including International Financial Services Centres (IFSCs) in India, as per the laws of the host jurisdiction, will be treated as Overseas Direct
Investment (ODI).