New Delhi, Aug 22 (IANS): The government has simplified the overseas investment rules with the aim of enhancing the 'ease of doing business' sentiment.

It has simplified the existing framework for overseas investment by aligning it with the current business dynamics and introducing greater clarity on overseas direct investment and overseas portfolio investment.

This has been done by bringing various overseas investment related transactions, which were earlier under approval route, within automatic route, a statement issued by the Finance Ministry said.

"In view of the evolving needs of businesses in India, in an increasingly integrated global market, there is need of Indian corporates to be part of the global value chain," the statement added while explaining the rationale behind the move.

In consultation with the Reserve Bank of India (RBI), the government undertook a comprehensive exercise to simplify these regulations.

The draft Foreign Exchange Management (Overseas Investment) Rules and draft Foreign Exchange Management (Overseas Investment) Regulations were also put in the public domain for consultations.

Extant regulations pertaining to overseas investments and acquisition and transfer of immovable property outside India have been subsumed within these rules and regulations, the statement said.