The Government has announced the Foreign Exchange Management (Overseas Investment) Rules, 2022 with an aim to ease rules for domestic firms that want to invest abroad. Through these Rules, Indian companies not in financial services can now directly invest in financial-services firms abroad, such as brokerages, asset management funds, and credit cards under the automatic route. The revised regulatory framework for overseas investment has been taken with a view of the evolving needs of businesses in India, in an increasingly integrated global market, and as there is a need of Indian corporate to be part of the global value chain. Enabling Indian entities not engaged in financial activities to invest in financial services is likely to improve the available avenues to deploy surplus funds. It is also likely to enable them to diversify in other jurisdictions. Relaxation of ‘round-tripping’ rules in the regulation will open up opportunities for various mergers and acquisitions.