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Foreign Investment in India . Foreign Direct Investment (FDI) Foreign Portfolio Investments (FIIs, NRIs, PIOs, QFIs) Foreign Venture Capital Investments (SEBI regd. V.C.s) Other Investments (G Secs, NCDs etc) Investment on non-repatriable basis (NRIs/PIOs).
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Foreign Investment in India Ashit Hegde
Foreign Direct Investment (FDI) • Foreign Portfolio Investments (FIIs, NRIs, PIOs, QFIs) • Foreign Venture Capital Investments (SEBI regd. V.C.s) • Other Investments (G Secs, NCDs etc) • Investment on non-repatriable basis (NRIs/PIOs) Ashit Hegde
FDI is undertaken in accordance with FDI Policy announced by GOI. • DIPP issues a consolidated FDI policy document every year as on 31st March. • FEMA (RBI) regulates other modes of investment i.e. shares, debentures etc. Ashit Hegde
Prohibition - Foreign Investment in any form is prohibited in any entity which is engaged in or proposed to be engaged in, • Business of chit fund or Nidhi • Agriculture or Plantation • Real Estate Business • Trading in TDRs • Lottery Business Real Estate business means buying and selling of land and immovable property but does not include construction of residential/commercial premises. Ashit Hegde
Investment in Partnership firm/ proprietary concern • An NRI or PIO can invest on non-repatriable basis. • All other Investments will need RBI prior permission. Reporting (revised form w.e.f Feb 11, 2014) - Form FC-GPR • To be filed by the investee company through A.D. Bank to the RO of RBI subsequent to allotment of shares/convertible debentures. • The reporting has to be done within 30 days of allotment of shares/convertible debentures. • Receipt of funds should be reported within 30 days of receiving the funds. Ashit Hegde