Mumbai: The Reserve Bank of India on Tuesday said Navratna Public Sector Undertakings — ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) — will be allowed to make overseas investments in the incorporated Joint Ventures/Wholly Owned Subsidiaries in the oil sector.
These investments for exploration and drilling for oil and natural gas by the Navratna PSUs, duly approved by the Government of India, will be without any limits under the automatic route, the RBI said in a notification.
So far, OVL and OIL were allowed to invest in overseas unincorporated entities in oil sector (for exploration and drilling for oil and natural gas), which are duly approved by the Government of India, without any limits under the automatic route.
Separate legal entity
An incorporated organisation is a separate legal entity from the people owning it. The board members do not normally have personal financial responsibility for contracts and debts incurred.
In the case of an unincorporated organisation, the owners/partners are personally liable for any debts or claims against the organisation.
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