What is UIN?
UIN = Unique Identification Number
- Allocated by RBI via AD (Authorized Dealer) Bank
- Required for any financial commitment abroad
- Used to track all ODI transactions and commitments
When is UIN required?
- A resident individual/entity invests in a foreign entity
- Financial commitments are made to that entity
✅ Crucial for regulatory compliance
Restricted sectors for ODI
ODI is not allowed for a resident individual/entity involved in:
- Buying & selling of real estate
- Gambling or betting activities
- Dealing in INR-linked financial products (without RBI approval)
ODI transaction timeline
If ODI is not completed within 6 months of incorporation/byelaws:
✅ A valuation report must be obtained for completion of the ODI
What is wrong ODI?
Wrong ODI = Investment made in a foreign entity that:
- Has a subsidiary in India while having control over the foreign entity
Disinvestment in wrong ODI cases
If shares are not allotted or ODI is found to be wrongful within 6 months of fund transfer:
- Investment must be brought back to the Indian bank account
- The allocated UIN will be cancelled by RBI
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