The Reserve Bank has allowed Limited Liability Partnership (LLP) firms to carry out financial commitment to/on behalf of joint ventures or wholly-owned subsidiaries of the Indian companies abroad. "On a review, it has been decided to notify a Limited Liability Partnership as an 'Indian Party'. Accordingly, an LLP, may henceforth undertake financial commitment to/on behalf of a JV/WOS abroad," the Reserve Bank said in a notification today. An 'Indian party' means a company incorporated in India making investment in a Joint Venture (JV) or Wholly-Owned Subsidiary (WOS) abroad and includes any other entity in India as may be notified by the RBI. RBI in certain cases has allowed an Indian party to make direct investment in a JV/WOS outside India. LLP is a form of partnership where all partners have limited liabilities. It provides that one partner would not be responsible or liable for another partner's misconduct or negligence.