The Reserve Bank of India’s (RBI) proposed overhaul of foreign investment rules last week is a welcome attempt to simplify a regulatory architecture that has grown increasingly complex through years of amendments, clarifications, and overlapping requirements. By replacing the existing framework with a more consolidated, principles-based regime, the draft seeks to make it easier for foreign investors to understand how investments are classified, structured, and regulated. Greater clarity on the distinction between foreign direct and portfolio investment, ownership and control, downstream investment, and other cross-border transactions should reduce uncertainty and compliance costs.