Gausia Shaikh, Bhargavi Zaveri
This policy note is a response to the RBI draft framework for allowing Indian residents
to invest in overseas technology funds with the prior approval of RBI. The response note
discusses issues concerning (a) the regulatory policy underlying capital outflows; and
(b) rule of law in the administration of the Indian framework governing capital controls.
It makes recommendations on the changes required to the draft regulation to align it with
the current thinking on capital outflows and ensure rule of law in its administration.