RBI vide Notification No. FEMA.385/2017-RB on Friday, March 3, 2017 notified Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2017 which shall come into force from the date of publication in Official Gazette. Vide said notification, Regulation 5(9) & Schedule 9 has been amended regarding FDI in LLP.
Regulation 5(9): person resident outside India may contribute foreign capital either by way of capital contribution or by way of acquisition / transfer of profit shares in the capital structure of an LLP under FDI, subject to the terms and conditions as specified in Schedule 9 (other than citizen/entity of Pakistan or Bangladesh & not being FPI or FII or FVC Investor registered in accordance with SEBI guidelines).
Schedule 9: Terms and conditions for FDI in LLP i.e. Eligibility of Investors, Investment & LLP, Pricing, Mode of Payment and Reporting.
The said Notification can be accessed from the following link:FEMA(TrfrOrIssueOfSecurity)2ndAmndReg2016_03.03.2017