RBI Allows PSU, OVL, Oil India to invest in overseas un-incorporated entities

These entities, however, would be duly approved by the Government of India, without any limits under the automatic route

Reserve Bank of India today allowed navratna public sector undertakings, ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) to invest in joint ventures and wholly owned subsidiaries of overseas incorporated entities in oil sector (for exploration and drilling for oil and natural gas, etc.).

These entities which are approved by the Government of India, won't be subject to any limits under the automatic route, RBI said in a notification. Earlier these companies were allowed to invest in overseas unincorporated entities.