Under the revised policy on overseas investments by the Reserve Bank of India (RBI), individual professionals like chartered accountants or software consultants, among others, will be the preferred category to be allowed for such proposals, sources told The Financial Express.

However, such cases will be studied on a case-to-case basis by the RBI to decide on the limit and granting of the final permission.

Earlier, overseas investment was allowed only to corporates, and individuals were permitted in exceptional cases, where the person concerned should be a Non-resident Indian (NRI) with a resident foreign currency account to service such investments or invest under the employee stock option scheme. However, these routes continue to exist along the new ones.

As per the revised guidelines, which are yet to be notified, the individuals can invest overseas from proceeds earned out of the existing Exchange Earner's Foreign Currency (EEFC) account or fees/shares earned in foreign currency in lieu of services rendered to the foreign partners. They would also be able to purchase foreign currency from the domestic market and go ahead with the investment.

Under the cashless employee stock option scheme, individuals can also acquire foreign securities by way of gift or inheritance from a person residing abroad or issued by company incorporated abroad, provided it does not involve any remittance from India. The shares can also be acquired by way of right shares issued by the overseas company or a minimum number of qualification shares issued by overseas company for holding a post of a director, provided such shares do not exceed $10,000 in a block of five calendar years.

Further to this, the RBI may, on an application made to it by the Indian software company, allow its resident employees to purchase foreign securities under ADR/GDR-linked stock option scheme provided such consideration does not exceed $50,000 in a block of five calender years.

According to sources, the RBI has already approved a few cases following the decision. Under the existing guidelines, the routes through which corporates can invest abroad include automatic routes such as ADR/GDR, ADR/GDR automatic stock swap route and the normal route.

Under the automatic route, Indian companies are free to invest up to $50 million in a block of three years, provided the overseas investment is in the core activity of the company.

As regards to the ADR/GDR automatic route, Indian companies are free to utilise the proceeds of the issues up to 50 per cent of the proceeds, whereas under the ADR/GDR automatic stock swap route, companies can swap their fresh issues for overseas acquisitions up to $100 million or ten times its exports in the last years.