Under automatic route, an Indian Company is not required to take prior approval from the RBI for setting up JV/WOS abroad. The criteria for direct investment under the automatic route shall include-
- Investment upto 400% of the net worth.
- Valuation requirements to be complied with to valuation of investment.
- Indian companies are not in RBIs caution list.
- Submission of APR in respect of all overseas investment.
- Certain additional requirements are also to be complied with if the indian company is engaged in providing financial services.
- Also, the foreign companies engaged in providing financial services.
- Also, the foreign companies engaged in real estate, trading in TDRs, and banking business required prior approval of RBI.


