Foreign Direct Investment
1 Pictorial presentation
3 FDI Policy
8 FDI Compliances
9 Issue Price
10 FDI in LLP
Other Select Provisions of FEMA
1 Borrowing / Lending in INR
2 Borrowing in Foreign Currency
3 Remittance by Resident
4 Remittance by NRI
5 Some other important provisions 6
6 Investment by NRI
FDI means Foreign Direct Investment by a non-resident in the capital of the Indian company under Schedule 1 of the Regulation
1 Equity shares
2 Preference shares *
* * Must be fully, compulsorily & mandatorily convertible into equity shares.
Person Resident in India
Residing in India for > 182 days in preceding Financial Year
a. gone out / stays outside India – for employment / business / vocation – any other purpose with an intention to stay for an uncertain period.
b. Comes or stays in India for any reason other than – for employment / business / vocation – any other purpose with an intention to stay for an uncertain period.
– any person or body corporate registered or incorporated in India,
– an office, branch or agency in India owned or controlled by a person resident outside India
– an office, branch or agency outside India owned or controlled by a person resident in India.
Person resident outside India means a person who is not resident in India
Non-Resident Indian (NRI) means an individual resident outside India who is
– a citizen of India or
– a person of Indian origin
Person of Indian Origin (PIO) is a Citizen of any country other than Bangladesh or Pakistan and
– has at any time held an Indian passport
– he, either of his parents or any grandparents were citizen of India
– spouse of either of the above two categories.
FDI can be made through
– Fulfill all the conditions as may be prescribed
– Reporting to RBI
– The overseas investor or the Indian investee company should obtain prior approval from Foreign Investment Promotion Board (FIPB).
– A citizen/entity incorporated in Bangladesh / Pakistan can invest in India, only under the Government route.
1 Lottery business, gambling, betting & casinos
2 Chit funds, Nidhi company
3 Real estate business, Farm houses, Trading in TDR
4 Manufacturing of tobacco products or its substitutes
5 Sectors not open to private investments like atomic energy, railways (other than railway infrastructure as per entry 18 of Annexure B to FDI scheme).
FEMA provisions for Resident and Non Resident Individuals
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