Reserve Bank of India had put curb on the Overseas Direct Investments The main reason behind this mo...........

Economic Affairs Investment Models

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Reserve Bank of India had put curb on the Overseas Direct Investments. The main reason behind this move is-

Pressure by foreign governments on India to execute specific mutual agreements on financial services

SEBI’s relevant recommendations to RBI

To protect the sliding rupee against dollar

None of the above

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Explanation:

Third option is correct.

Recently the Reserve Bank of India put curb on the Overseas Direct Investments. The main reason behind this move is to protect the sliding rupee against dollar.

Overseas Direct Investments (ODI) refers to the investments made in the overseas entities by way of contribution to their capital or subscription to the Memorandum of Association of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase or private placement or through stock exchange, but it does not include portfolio investment.