IVCA Welcomes Consultative Approach on Draft FEMA NDI Rules

Industry appreciates consultative approach adopted by RBI, SEBI, DPIIT and DEA on the evolving foreign investment framework

Mumbai, August 25, 2026: The Indian Venture and Alternate Capital Association (IVCA) has welcomed the recent stakeholder consultation on the draft Foreign Exchange Management (Non-Debt Instruments) Rules, appreciating the open and constructive consultative approach adopted by the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Department for Promotion of Industry and Internal Trade (DPIIT) and Department of Economic Affairs (DEA) with the alternate capital industry.

The consultation brought together policymakers, regulators and industry participants to discuss the proposed framework and its practical implications. IVCA members participated actively in the discussions and appreciated the opportunity to share concerns, suggestions and implementation-related inputs directly with the relevant authorities.

The industry welcomed the proposed measures aimed at further liberalising foreign investment and improving ease of doing business, as regards to stakes below 10% and the likelihood of a move towards allowing market forces to determine valuation. At the same time, IVCA emphasised the importance of maintaining the existing treatment of AIFs under the IOCC framework, grandfathering transactions and funds undertaken under the current regulations, and ensuring that any new provisions be applied prospectively.

Srini Sriniwasan, Chairperson, IVCA, said, “We deeply appreciate the joint forum of RBI, SEBI, DPIIT and DEA on this important reform and liberalisation measure. Bringing policymakers, regulators and industry together provides an important opportunity to discuss the practical implications of the proposed framework and ensure that industry perspectives are considered as the regulations evolve. Such a consultative approach will be important in creating greater predictability, improving ease of doing business and strengthening India’s attractiveness for global capital.”

IVCA believes the consultation reflects the value of bringing policymakers, regulators and market participants together while regulations are being shaped. Such a consultative approach enables practical implementation issues to be discussed early and provides industry an opportunity to contribute its experience towards an efficient and investment-friendly regulatory framework.

IVCA looks forward to continuing to provide relevant industry inputs as the proposed framework evolves and supporting efforts towards a simpler and more predictable foreign investment regime.