IVCA Welcomes Consultative Approach on Draft FEMA NDI Rules
On 26 August 2026, the Indian Venture and Alternate Capital Association (IVCA), a not‑for‑profit apex body representing more than 500 funds with a combined assets‑under‑management of over USD 350 billion, issued a press release praising the recent stakeholder consultation on the draft Foreign Exchange Management (Non‑Debt Instruments) Rules. The consultation was jointly organised by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Department for Promotion of Industry and Internal Trade (DPIIT) and the Department of Economic Affairs (DEA), bringing together policymakers, regulators and industry participants.
IVCA members actively participated in the discussions, which focused on a proposed framework aimed at further liberalising foreign investment. Key proposals highlighted include easing investment for stakes below 10 percent and moving towards a market‑driven valuation mechanism. The industry welcomed these measures as steps that could improve ease of doing business and enhance India’s attractiveness for global capital.
While supporting liberalisation, IVCA emphasized the need to retain the existing treatment of Alternative Investment Funds (AIFs) under the International Operations and Capital Controls (IOCC) framework. The association urged that transactions and funds already operating under current regulations be grandfathered and that any new provisions be applied only prospectively, avoiding retroactive impact on existing structures.
Chairperson Srini Sriniwasan stated, “We deeply appreciate the joint forum of RBI, SEBI, DPIIT and DEA on this important reform and liberalisation measure. Bringing policymakers, regulators and industry together provides an important opportunity to discuss the practical implications of the proposed framework and ensure that industry perspectives are considered as the regulations evolve. Such a consultative approach will be important in creating greater predictability, improving ease of doing business and strengthening India’s attractiveness for global capital.”
IVCA concluded that the consultative process reflects the value of early engagement between regulators and market participants, enabling practical implementation issues to be addressed promptly. The association pledged to continue providing relevant inputs as the draft framework evolves, supporting efforts toward a simpler and more predictable foreign investment regime.