471 FAQs on Foreign Investments (FIs) by Non-Residents of India (Non-RoI)

Reserve Bank of India (RBI) has compiled 471 FAQs on foreign investments (FIs) by non-residents of India (non-RoI) in non-debt instruments (NDIs), based on Master Direction No. 11/2017-18, updated until January 20, 2025. This compilation outlines that FIs are governed by Section 6(2A) and Section 47 of the Foreign Exchange Management Act, 1999 (FEMA), and the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (NDIs Rules). The NDIs Rules empower the RBI to administer, interpret, and issue directions, circulars, and clarifications. Authorized Persons (APs) conduct foreign exchange business as per RBI guidelines. The document defines key terms such as Equity Instruments, Indian Companies, Control, Foreign Companies, FDI, FPI, and Repatriation Basis, among others. It details prohibited sectors for FIs, including lottery, gambling, and real estate (with exceptions for construction and REITs), and specifies that investments from land-border countries require government approval. The FAQs also cover rules for fully and partly paid shares, emphasizing compliance and reporting requirements.

471 FAQs on Foreign Investments (FIs) by Non-Residents of India (Non-RoI)

(Source for compilation is RBI’s Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025)

• FIs in Non-Debts Instruments (NDIs) by Non-RoI

 

(A) RBI’s Provisions

1. What are Provisions?

(i) FIs are regulated under section 6(2A) + also section 47 of Foreign Exchange Management Act, 1999 (FEMA) “both”

(ii) Non-RoI are required to obey guidelines prescribed under Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (NDIs Rules) issued vide Gazette Notification No. S.O. 3732(E) dated October 17, 2019

(iii) NDIs rules 2019 are supersession of 2 existing rules like:

(iv) FEM (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017

(v) FEM (Acquisition and Transfer of Immovable Property in India) Regulations, 2018

2. What are NDIs Rules, 2019?

(i) NDIs Rules are empowering Reserve Bank of India (RBI) when considered necessary for effective implementation of NDIs Rules 2019’s provisions like:

(a) For exercising administration of NDIs Rules, 2019

(b) For issuing interpretation of NDIs Rules, 2019

(c) For issuing directions of NDIs Rules, 2019

(d) For issuing circulars of NDIs Rules, 2019

(e) For issuing instructions of NDIs Rules, 2019

(f) For issuing clarifications of NDIs Rules, 2019

(g) Instructions are to include matters for mode of payment + also reporting requirements by Non-RoI as prescribed under Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Rules, 2019 (FEMA 395).

3. What are Authorized Persons (APs)?

(i) RBI is permitted for issuing directions to APs under Section 11 of FEMA, 1999.

(ii) RBI’s Master Direction (MD) 11/2017-18 updated up to January 20, 2025 is prescribing modalities for conducting foreign exchange business by APs with their customers + also constituents “both”

4. What are Instructions?

• RBI has issued several instructions for FIs + also related aspects “both” under FEMA, 1999 like:

S. No	Rules/Notifications/ A.P. (DIR Series) Circulars	Date
(i)	FEM (NDIs) (4th Amendment) Rules, 2024	August 16, 2024
(ii)	FEM (NDIs) (2nd Amendment) Rules, 2024	March 14, 2024
(iii)	FEM (NDIs) (Amendment) Rules, 2024	January 24, 2024
(iv)	FEM (NDIs) (Amendment) Rules, 2022	April 12, 2022
(v)	FEM (NDIs) (4th Amendment) Rules, 2021	October 12, 2021
(vi)	FEM (NDIs) (3rd Amendment) Rules, 2021	October 05, 2021
(vii)	FEM (NDIs) (2nd Amendment) Rules, 2021	August 19, 2021
(viii)	FEM (NDIs) (Amendment) Rules, 2021	August 06, 2021
(ix)	FEM (NDIs) (2nd Amendment) Rules, 2020	April 27, 2020
(x)	FEM (NDIs) (Amendment) Rules, 2020	April 22, 2020
(xi)	FEM (NDIs) (Amendment) Rules, 2019	December 05, 2019
(xii)	FEM (NDIs) Rules, 2019	October 17, 2019

5. What is Master Direction (MD)?

(i) RBI is permitted for issuing MD under section 10(4) + also 11(1) of FEMA, 1999

(ii) MD is issued for NDIs Rules, 2019

(iii) MD is not restricting for obtaining permissions or approvals as required under other laws (non-FEMA, 1999) “if any”.

(iv) MD is to be read with relevant Circulars + notifications + directions + FEMA, 1999 + also NDIs Rules, 2019 “all”

(v) FIs by Non-RoI are to be made in accordance with FEMA, 1999 + Circulars + notifications + directions + NDIs Rules, 2019 + also DIs Regulations, 2019 “all”

6. What is Resident become Non-RoI?

(i) Non-RoI are permitted to hold + to own + to transfer + to invest in securities like NDIs + also DIs “all” when they have already acquired or held or owned being RoI or inherited from RoI under section 6(5) of FEMA, 1999

(ii) These investments are to be held on “non-repatriation” basis

(iii) (a) Non-RoI are permitted to hold investments in securities after receiving being legal heir of RoI on “non-repatriation” basis.

(b) These transactions are not required to report

(iv) Residents became Non-RoI are required to hold securities on “non-repatriation” basis

(B) RBI’s Key Terms

7. What is FEMA?

• FEMA is to include Foreign Exchange Management Act (FEMA), 1999 applicable for NDIs + also DIs “both”

8. What are Equity Instruments (EIs)?

• Equity instruments (EIs) are to include certain securities like:

(i) Equity shares issued by Indian companies

(ii) Convertible debentures issued by Indian companies

(iii) Preference shares issued by Indian companies

(iv) Share warrants issued by Indian companies

9. What is Indian Companies (ICs)?

• Indian companies (ICs) to include certain companies like:

(i) Companies defined in Companies Act (CA), 2013

(ii) Body corporate established by Central govt.

(iii) Body corporate established under Central Act

(iv) Body corporate established by State Govt.

(v) Body corporate established under State Act

(vi) Body corporate constituted by Central Govt.

(vii) Body corporate constituted under Central Act

(viii) Body corporate constituted by State Govt.

(ix) Body corporate constituted Under State Govt.

• Indian Companies (ICs) not to include certain entities like:

(i) Registered + also un-registered “both” societies

(ii) Registered + also un-registered “both” trusts

(iii) Registered + also un-registered “both” other entities

• FIs are not permitted to invest in societies + trusts + also other entities “all”

10. What is Control?

(i) Control of company is to include meaning assigned under section 2(27) of CA, 2013

(ii) Control of LLP is to include right to appoint majority of designated partners

11. What is Foreign Companies (FCs)?

(i) Foreign companies are to include meaning assigned under section 2(42) of CA, 2013

Or

(ii) Foreign companies are to include office + branch + agency in India + also owned or controlled by Non-RoI “all”.

12. What is E-commerce’s market place model?

• E-commerce’s market place model is to include providing information technology platform by e-commerce entity on digital + also electronic network “both” for acting as facilitator between buyers and sellers.

13. What are E-commerce’s inventory-based model’s FIs?

• FIs are not permitted for e-commerce’s inventory-based model

14. What are FDI linked performance requirements?

• Schedule I of NDI rules, 2019 is specifying sector specific FDI linked performance requirements for companies receiving FIs

15. What are Foreign Direct Investments (FDIs)?

(i) FDIs are to include investments made in NDIs by Non-RoI in certain companies like:

(ii) FDIs in unlisted Indian companies by new Non-RoI

(iii) FDIs in listed Indian companies for more than 10% of post issue paid-up capital on fully diluted basis by new Non-RoI

(iv) FDIs in listed Indian companies beside became less than 10% of post issue paid-up capital on fully diluted basis by old Non-RoI

16. What is Fully Diluted Basis (FDB)?

• Fully diluted basis is to include total number of shares after transfer is completed

17. What are Foreign Portfolio Investments (FPIs)?

• Foreign portfolio investments are to include investments made in NDIs by Non-RoI subject to satisfying certain conditions like:

(i) FPIs are permitted lower than 10% of post issue paid-up capital on fully diluted basis in NDIs by Non-RoI in listed Indian companies

(ii) FPIs are permitted lower than 10% of paid-up value of “each series” in NDIs by Non-RoI in listed Indian companies

18. What are Foreign Portfolio Investors (FPIs)?

• FPIs are to include persons registered with SEBI (Foreign Portfolio Investors) Regulations, 2014 as duly amended time to time.

19. What are Foreign Institutional Investors (FIIs)?

• FIIs + sub accounts are to include entities registered with SEBI (Foreign Institutional Investors) Regulations, 1995 + also holding valid Certificate of Registration (CoR) for block of 3 years “all”.

20. What are Foreign Investments (FIs)?

(i) FIs are to include investments on “repatriation” basis by Non-RoI in NDIs of Indian companies + also in capital of Indian Limited Liability Partnership (LLP) “both”

(ii) Issue / transfer of participating interest + also right “both” to Non-RoI in oil filed by Indian companies

(iii) Investments by resident Indian citizens when they have made declarations specified under CA, 2013 that Beneficial Ownerships (BOs) are held by non-RoI

(iv) FDIs + also FPIs “both” in Indian companies / LLPs by non-RoI are treated FIs

(v) FIs are to include to subscribes + to acquires + to holds + to transfers of securities + also units “all” issued by Indian companies

(vi) FIs are to include acquisitions + holdings + transfer of Depository Receipts (DRs) issued outside India + also underlying securities issued by Indian companies “all”.

(vii) FIs are to include LLP’s capital contributions + acquisitions + also transfer of share in profits “all”

21. What are Group Companies (GCs)?

• Group companies are to include minimum 2 entities directly / indirectly having certain powers like:

(i) Jointly are eligible for minimum 26% voting rights in other entities

(ii) Jointly are eligible for appointing more than 50% directors in other entities

22. What are Indian entities?

• Indian entities are to include Indian companies + also Indian LLPs “both”

23. What are Employees Stock Options (ESOPs)?

• ESOPs are to include shares as defined under CA, 2013 + also issued under SEBI’s regulations “both”.

24. What are Sweat Equity Shares (SESs)?

• SESs are to include shares as defined under CA, 2013

25. What are Share Based Employee Benefits (SBEBs)?

• SBEBs are to include issuing of NDIs to employees + directors of holding companies + also Joint Ventures (JVs) + Wholly Owned Overseas Subsidiaries (WOOSs) + also other overseas subsidiaries “all” through SBEBs’ formulated by Indian companies.

26. What is Repatriation Basis (RB)?

• FIs are to include investments on “repatriation” basis when sale proceeds + also maturity proceeds “both” are permitted to remit outside India after TDS under Income Tax (IT) Act, 1961.

27. What are Investment Vehicles (IVs)?

• Investment vehicles are to include entities those are registered + also regulated “both” by certain authorities like:

(i) Real Estate Investment Trusts (REITs) governed by SEBI (REITs) Regulations, 2014

(ii) Infrastructure Investment Trusts (InvITs) governed by SEBI (InvITs) Regulations, 2014

(iii) Alternative Investment Funds (AIFs) governed by SEBI (AIFs) Regulations, 2012

28. What are Venture Capital Funds (VCFs)?

(i) VCFs are established as trusts / companies / body corporates those are registered + also regulated by SEBI (Venture Capital Fund) Regulations, 1996

(ii) VCFs are not treated investment vehicles for FIs by Non-RoI under NDIs Rules, 2019 + also Master Direction (MD) 11/2017-18 updated up to January 20, 2025 “both”

29. What are Limited Liability Partnerships (LLPs)?

• LLPs are to include partnership formed + also registered “both” under Limited Liability Partnership (LLP) Act, 2008

30. What are Listed Indian Companies (LICs)?

• LICs are to include companies listed on recognized stock exchange(s) in India

31. What are Non-Debt Instruments (NDIs)?

• NDIs are to include instruments specified by Central govt. through notifying in Gazette by Notification S.O. 3722 (E) dated Oct 16, 2019 like:

(i) 100% investments in NDIs in certain incorporated entities like:

(a) Private unlisted companies

(b) Public unlisted companies

(c) Public listed companies

(ii) 100% capital participations in LLPs

(iii) 100% instruments for FIs recognized in FDI policy notified from time to time

(iv) (a) 100% investments in units of Alternative Investment Funds (AIFs)

(b) 100% investments in units of Real Estate Investment Trust (REITs)

(c) 100% investments in units of Infrastructure Investment Trusts (InvITs)

(v) 100% investments in units of mutual funds + also Exchange-Traded Fund (ETFs) when investments are made more than 50% in NDIs

(vi) 100% junior-most layers e. equity tranches of securitization structures

(vii) 100% acquisitions / sales / dealings directly in immovable properties

(viii) 100% contributions to trusts

(ix) 100% Depository Receipts (DRs) issued against NDIs

32. Who are Non-Resident Indians (NRIs)?

• NRIs are to include individuals those are Non-RoI + also citizens in India “both”.

33. Who is Overseas Citizens of India (OCIs)?

(i) OCIs are to include individuals those are Non-RoI + also citizens “outside” India “both”

But

(ii) OCI’s registered card holders being Indian origins under section 7(A) of Citizenship Act, 1955 (57 of 1955)

34. Who are Resident Indian Citizens (RICs)?

• RICs are to include individuals those are residents + also citizens in India “both” under Citizenship Act, 1955 (57 of 1955)

35. What are Real Estate Businesses (REBs)?

(i) REBs are to include business of dealing in lands + also immovable properties for earning profits “both”

(ii) REBs are to include certain transfers like:

(a) Sales + exchanges + also relinquishments of assets “all”

(b) Extinguishment of rights for sales + exchanges + relinquishments of assets “all”

(c) Compulsory acquisitions for sales + exchanges + relinquishments of assets “all”

(iii) 100% transactions for possessing of immovable properties + also retaining for part performance of contract of nature as referred in section 53A of Transfer of Property Act,1882 (4 of 1882)

(iv) 100% transactions for acquiring capital instruments in companies + through agreements + arrangements + other manners to effect transfers + also to enable enjoyment of immovable properties “all”.

36. What are Not Real Estate Businesses (REBs)?

(i) Construction of residential premises

(ii) Construction of commercial premises

(iii) Construction of roads

(iv) Construction of bridges

(v) Construction of educational institutions

(vi) Construction of recreational facilities

(vii) Construction of city level infrastructures

(viii) Construction of regional level infrastructures

(ix) Development of townships

(x) Investment in units of Real Estate Investment Trusts (REITs) registered + also regulated “both” under SEBI (REITs) regulations 2014.

(xi) Rental incomes on lease of properties

(xii) 100% Real estate broking services are permitted for FIs under “automatic” route

37. What are Sectoral Caps (SCs)?

(i) Sectoral caps are to include maximum permissible limit for direct + indirect FIs by non- RoI on “repatriation” basis in NDIs of Indian companies + also capital contributions of Indian LLPs “all”

(ii) Sectoral caps are not to include Foreign Currency Convertible Bonds (FCCBs) + also Depository Receipts (DRs) when these are underlined (backed) by debt assets.

(iii) Sectoral caps are to include NDIs acquired by non- RoI from conversion of debt instruments

38. What are Units?

(i) Units are to include beneficial interests of investors in investment vehicles

(ii) Units are to include partly paid units as permitted under SEBI’s regulations framed in consultations with Govt. of India.

(iii) (a) Issue of partly paid units by Alternative Investment Funds (AIFs) to non- RoI were not permitted before issuance of Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2024.

But

(b) Now permitted after issuance of Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2024

(iii) Issue of partly paid units before issuance of Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2024 are to be regularized through compounding under FEMA, 1999.

(iv) AD Category-I banks are required to ensure that necessary administrative actions + reporting for issuance by AIFs to RBI through Foreign Investment Reporting and Management System (FIRMS) Portal + issued conditional acknowledgements + also reporting is completed “all” before approaching to RBI for compounding on behalf of AIFs.

39. What are Clarifications for Key terms?

(i) 100% words + also expressions “both” are used but not defined in this MD shall have same meanings as assigned to them in FEMA, 1999 + FEMA Rules + Regulations “all”.

(ii) Banking channels are to include rupee vostro accounts + also Special Rupee Vostro Accounts “both” permitted to be maintained by non- RoI under Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016

(C) Govt.’s Prohibited Sectors / Persons

40. What are Prohibited sectors?

• FIs by non- RoI are not permitted in certain sectors like:

(i) Business for lotteries like:

(a) Government’s lotteries

(b) Private’s lotteries

(c) Online’ lotteries

(ii) Business for gambling

(iii) Business for betting

(iv) Business for casinos

(v) Business for Chit funds

(vi) Business for Nidhi company

(vii) Trading in Transferable Development Rights (TDRs).

(viii) Business for Real estate

(ix) Business for construction of farm houses

(x) Business for management contract like:

(xi) Business for lotteries

(xii) Business for gambling

(xiii) Business for betting

41. What are Clarifications?

• Business for Real estate is not to include certain activities like:

(i) Development of townships

(ii) Construction of residential premises

(iii) Construction of commercial premises

(iv) Construction of roads

(v) Construction of bridges

(vi) Formation of Real Estate Investment Trusts (REITs) those are registered + also regulated “both” under SEBI (REITs) Regulations, 2014.

(vii) Manufacturing for certain items like:

(a) Manufacturing for Cigars

(b) Manufacturing for Cheroots

(c) Manufacturing for Cigarillos

(d) Manufacturing for Cigarettes of tobacco

(e) Manufacturing for Cigarettes of tobacco substitutes

(viii) 100% activities/sectors are not opened for private sector investments like:

(a) Atomic energy activities/sectors

(b) Railway operation activities/sectors

(ix) 100% Foreign technology collaborations + also licensing “both” are not opened like:

(a) For franchises

(b) For trademarks

(c) For brand names

(d) For management contracts

42. What are approvals?

(i) FIs by non- RoI from land border countries are permitted through “approval” route under Schedule I of NDI Rules, 2019

(ii) Land borders countries are to include 7 countries like:

(a) Afghanistan

(b) Bangladesh

(c) Bhutan

(d) China

(e) Myanmar

(f) Nepal

(g) Pakistan

43. What are Prohibited sector’s exceptions?

• Multilateral Banks (MBs) + Multilateral Funds (MFs) are permitted for FIs in India when India is member country for MBs + also MFs “all”

(D) Types of NDIs

♦(D-1) Equity shares♦

44. What are Fully (100%) paid shares?

(i) 100% Indian companies are permitted to receive FIs from Non-RoI for certain securities like:

(a) Equity shares

(b) Convertible debentures

(c) Preference shares

(d) Share warrants

(ii) Equity shares are to include fully (100%) paid shares + also partly (not 100%) paid shares which are issued under provisions of CA, 2013 “both”

45. What are Partly (not 100%) paid shares?

(i) Partly (not 100%) paid shares are required to consider NDIs from July 08, 2014

(ii) Indian companies are required to call within 12 months from date of issue when partly (not 100%) paid shares are issued to Non-RoI

(iii) (a) Indian companies are required to receive minimum 25% of face value + also premium’s amount (both together) at time of issue to Non-RoI

(b) Indian companies are required to receive “balance” face value + also premium’s amount (both together) within 12 month from date of issue to Non-RoI

(iv) Indian listed companies are not required to receive “balance” face value + also premium’s amount (both together) within 12 months when these have appointed monitoring agency like AD Category -1 bank in accordance with regulations 41 + 82 +also 137 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended from time to time “all”.

(v) (a) Indian unlisted companies are not required to receive “balance” face value + also premium’s amount (both together) within 12 months when these have appointed similar monitoring agency like AD Category -1 bank in accordance with regulations 41 + 82 +also 137 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended from time to time “all”.

(b) These monitoring agencies like AD Category -1 banks are required to report to Indian companies as prescribed for Indian listed companies by SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended from time to time.

(vi) Indian listed/unlisted companies are permitted to forfeit amount received upfront for FIs from Non-RoI in accordance with provisions of CA, 2013 + also Income Tax (IT) Act, 1961 “both”.

(vii) Deferment of payment for face value + also premium’s amount (both together) or shortfall in receipt in accordance with pricing guidelines are not to treat subscription for partly (not 100%) paid equity shares

(viii) These provisions are applicable when Non-RoI have acquired partly (not 100%) paid shares through transfer

♦(D-2) Share Warrants♦

46. What are Warrants?

(i) 100% share warrants are required to consider NDIs from July 08 2014 for FIs by non-RoI

(ii) Share warrants to include NDIs issued by Indian listed /unlisted companies in accordance with regulations made by SEBI 1992 + CA, 2013 + also any other applicable law “all”.

(iii) (a) Indian listed/unlisted companies are required to determine “upfront” for pricing / conversion formula.

(b) These are required to receive “upfront” minimum 25% for face value + also premium “both”

(c) These are required to receive “balance” within 18 months from date of issuance of share warrants.

(d) Pricing for conversion is required not to lower than fair value computed at time of issue of share warrants in accordance with existing rules + regulations + also pricing guidelines stipulated time to time “all”

(iv) Forfeiture against “balance” amount for face value + premium (both together) are required to made in accordance with provisions of CA, 2013 + also IT Act, 1961 “all”

(v) Deferment of payment for face value + premium (both together) or shortfall amount in accordance with pricing guidelines are not to treat as subscription for shares warrants

(vi) These provisions are applicable when Non-RoI have acquired share warrants through transfer

♦(D–3) Convertible Debentures♦

47. What are Convertible debentures?

(i) Convertible debentures are to include 100% fully paid mandatorily + also convertible debentures “both”

(ii) Period of conversion is required in accordance with provisions of CA, 2013 + also rules “both” amended from time to time.

(iii) Indian companies are required to determine price/conversion formula “upfront” at time of issuing convertible debentures

(iv) Indian companies are required to ensure that price / conversion formula is not lower than fair value “computed” at time of issuing convertible debentures in accordance with NDI Rules, 2019

(v) (a) Convertible debentures are not to treat NDIs when issued not fully + compulsorily + also mandatorily convertible “all” vide notification no. S.O.3722(E) dated October 16, 2019, issued under section 6(7)

(b) These convertible debentures are not governed under NDI Rules, 2019.

(vi) Optionally convertible + also partially convertible “both” debentures issued before June 07, 2007 are required to treat issued under NDI Rules, 2019

(vii) (a) Optionally convertible + also partially convertible “both” debentures issued after June 07, 2007 are required not to treat issued under NDI Rules, 2019

(b) These debentures are required to treat DIs in accordance with External Commercial Borrowing (ECB) guidelines framed under Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2018 amended from time to time.

♦(D–4) Preference Shares♦

48. What are Preference shares?

(i) Preference shares are to include 100% fully paid mandatorily + also convertible shares “both”

(ii) Period of conversion is required in accordance with provisions of CA, 2013 + also rules “both” amended from time to time.

(iii) Indian companies are required to determine price/conversion formula “upfront” at time of issuing preference shares

(iv) Indian companies are required to ensure that price / conversion formula is not lower than fair value “computed” at time of issuing preference shares in accordance with NDI Rules, 2019

(v) (a) Preference shares are required not to treat NDIs when issued not fully + compulsorily + also mandatorily convertible “all” vide notification no. S.O.3722(E) dated October 16, 2019 issued under section 6(7)

(b) These preference shares are not to govern under NDIs Rules, 2019.

(vi) Optionally convertible + also partially convertible “both” preference shares issued before April 30, 2007 are required to treat issued under NDIs Rules, 2019

(vii) (a) Optionally convertible + also partially convertible “both” preference shares issued after April 30, 2007 are required not to treat issued under NDIs Rules, 2019

(b) These preference shares are required to treat DIs in accordance with External Commercial Borrowing (ECB) guidelines framed under Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2018 as amended from time to time

(viii) These Indian companies are required to issue NDIs with optional clause for minimum 1 year locking period or period prescribed for specific sector whichever is higher when issued after December 29, 2013. However, option / right to exit are required at assured price.

(E) RBI’s Automatic route + Govt.’s Approval route

49. What is Automatic route?

(i) Indian companies are permitted to receive FIs under RBI’s “automatic” route when govt.’s approvals are not required

(ii) Indian companies are permitted to receive under “automatic” route where activities are permitted without FDI linked performance conditions + companies are not in actual operations + also not made foreign downstream investments / Indirect Foreign Investments (IFIs) “all”.

50. What is Approval route?

(i) Indian companies are permitted to receive FIs under Govt.’s “approval” route when “automatic” route is not permitted

(iii) Indian companies are required to obey conditions as stipulated in ’s approvals

(iii) Indian companies are required to take govt.’s approval from certain govt departments like:

(a) From Secretariat for Industrial Assistance (SIA)

(b) From Department of Industrial Policy and Promotion (DIPP)

(iv) Indian companies / Non-RoI are required to submit applications for govt.’s approval on Foreign Investment Facilitation Portal (FIFP) of Department for Promotion of Industry and Internal Trade (DPIIT) Ministry of Commerce and Industry, Government of India

(v) Indian companies are not required to take ’s approval / to obey compliances for sectorial’ conditions when aggregate Foreign Portfolio Investments (FPIs) are not exceeding certain limits like:

(a) 49% of paid-up capital on fully diluted basis

(b) Sectoral cap

(c) Statutory cap

• Whichever is lower

(vi) Indian companies are required to take ’s approval / to obey compliances for sectorial’ conditions when FIs are transferring ownerships + also control “both” from resident Indian citizens to Non-RoI

(vii) Indian companies are required to take ’s approval / to obey compliances for sectorial’ conditions for other FIs by Non-RoI

(viii) Required compliances are laid down in Schedule I of NDIs Rules, 2019

(ix) 24% FIs are permitted as laid down in Schedule II of NDIs Rules, 2019

(x) (a) Indian companies are required to take ’s approval for FIs when undertaking activities which are under Govt.’s approval route.

(b) These Indian companies are required to take govt.’s approval for FIs when commenced business or made foreign downstream investments / IFIs.

51. What are Sectoral caps?

(i) Sectoral caps are to include permissible limit for FIs in NDIs of Indian companies on “repatriation” basis

Or

(ii) Sectoral caps are to include permissible limit for FIs in capital of Indian LLPs on “repatriation” basis

(iii) Percentage of FIs in each activity are laid down in Schedule I of NDI Rules, 2019

(iv) FIs are not to exceed sectoral caps / statutory caps

(v) 100% FIs are permitted under “automatic” route for activities which are not laid down in Schedule I of NDI Rules, 2019

(vi) 100% FIs are permitted under “automatic” route for activities which are not laid down in Para 2 of Schedule I of NDI Rules, 2019 like prohibited activities

(vi) Indian companies are required to take ’s approval for FIs in financial services as laid down in Serial number F of table under Para 3(b) of Schedule I of NDIs Rules, 2019

52. What is Minimum capitalization?

(i) FIs’ Minimum capitalization is to include face value + also share premium “both”

(a) FIs’ minimum capitalization is not to include amount paid by transferee over and above NDI’s issue price

(b) Indian companies are permitted to make request to Department of Promotion of Industry and Internal Trade, Ministry of commerce and Industry, Government of India for clarification against FIs in specific sector + also sector related conditions “both”

53. What are Investing Companies (ICs)?

(i) Indian companies are required to obtain govts’ approvals in certain circumstances like:

(a) When Indian companies are not registered with RBI as NBFC

(b) When Indian companies are Core Investment Companies (CICs)

(ii) These CICs are required to “additionally” comply with regulatory framework prescribed for NBFCs under RBI Act, 1934 + also related regulations “both”

(iii) Indian companies are permitted under 100% “automatic” route for FIs when these are registered with RBI as NBFCs

54. What is NOF in NBFCs?

(i) Indian NBFCs are required to maintain minimum Net Owned Fund (NOF) prescribed by RBI

(ii) Indian NBFCs are required to use minimum NOF for complying this conditions.

(iii) Indian NBFCs are required to repatriate this minimum NOF when RBI has not granted registration /

• Indian companies are required to comply requirements prescribed by RBI for sectoral caps / statutory caps

(i) Indian companies are required to have joint statutory auditors when Non-RoI asked to have specific international statutory auditors.

(ii) These auditors should not be part of same international auditors’ network

(F) RBI’s Eligible Non-RoI

55. What are Eligible Non-RoI?

(i) Indian companies are required to obey RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other “mandatory” conditions

(ii) Indian companies are required to allow certain modes like:

(a) Through subscriptions of NDIs

(b) Through purchases of NDIs

(c) Through sales of NDIs

(iii) Necessary RBI’s directions are available in Annex 1 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

56. What are FIs by FPIs?

(i) Stock exchanges are required to permit for purchase + also for sale of listed Indian companies NDIs “both” by Foreign Portfolio Investors (FPIs) on “repatriation” basis.

(ii) Necessary RBI’s directions are available in Annex 2 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

57. What are FIs on “repatriation” basis by NRIs + OCIs?

(i) Stock exchanges are required to permit for purchase + for sale of listed Indian companies NDIs by Non-Resident Indians (NRIs) + also Overseas Citizen of India (OCIs) on “repatriation” basis “all”.

(ii) Necessary RBI’s directions are available in Annex 3 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

58. What are FIs on “non-repatriation” basis by NRIs + OCIs?

(i) Indian companies are permitted to allow for purchase + for sale of listed Indian companies NDIs + units of equity dominated mutual funds + capital contributions to LLPs by Non-Resident Indians (NRIs) + also Overseas Citizen of India (OCIs) on “non-repatriation” basis “all”.

(ii) Necessary RBI’s directions are available in Annex 4 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

59. What are FIs in LLPs by Non-RoI?

(i) Indian LLPs are permitted to allow for capital contributions from Non-RoI on “repatriation” basis “all”.

(ii) Necessary RBI’s directions are available in Annex 5 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

60. What are FIs by FVCI?

(i) Indian companies are permitted to allow for FIs from Foreign Venture Capital Investor (FVCI) on “repatriation” basis “all”.

(ii) Necessary RBI’s directions are available in Annex 6 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

61. What are FIs by IVs?

(i) Indian companies are permitted to allow for FIs from Investment Vehicles (IVs) on “repatriation” basis “all”.

(ii) Necessary RBI’s directions are available in Annex 7 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

62. What are DRs by Non-RoI?

(i) Indian companies are permitted to allow for Depository Receipts (DRs) from Non-RoI on “repatriation” basis “all”.

(ii) Necessary RBI’s directions are available in Annex 8 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

(iii) Indian companies are permitted to allow for purchase + for sale of Depository Receipts (DRs) from/to Non-RoI on “repatriation” basis “all”.

(iv) Necessary RBI’s directions are available in Annex 9 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

63. What are FIs by other than non- RoI?

(i) Indian companies are permitted to allow for FIs from other than Non-RoI on “repatriation”

(ii) Necessary RBI’s directions are available in Annex 10 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

64. What are FIs by permissible holders?

(i) Indian companies are permitted to allow for FIs from permissible holders on “repatriation” basis when Indian companies are incorporated in India + also listed on international stock exchange outside India “both”.

(ii) Necessary RBI’s directions are available in Annex 11 of Master Direction (MD) No. 11/2017-18 updated up to January 20, 2025

65. What is FIs through right / bonus shares?

• Indian companies are permitted to allow issue of right shares + also bonus shares “both” after satisfying certain conditions like:

(i) That offers are made in accordance with provisions of CA, 2013

(ii) That after offers sectoral caps are not exceeded

(iii) That Non-RoI have acquired + also held “both” NDIs in accordance with NDI Rules, 2019

(iv) (a) That offers for NDIs other than share warrants are to be same like on “repatriation” / “non-repatriation” basis

(b) These offers are not changing original FIs’ nature like FDI or FPI after issue of right / bonus shares

(v) That offers are made at price determined by listed Indian companies

(vi) That offers are made at price not lower than price offered to RoI by un-listed Indian companies

(vii) That offers are made in accordance with conditions prescribed at time of issue of right shares / bonus shares

(viii) That offers are made for payments through direct foreign inward remittance via official banking channel from outside India or out of funds held in India in repatriable foreign currency or rupee account “any” maintained in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 where original investments were made on “repatriation” basis.

(ix) That offers are made for payments through Non-Resident Ordinary (NRO) accounts maintained in accordance with Foreign Exchange Management Regulations, 2016 where original investments were made on “non-repatriation” basis

(x) That offers are made for payments through direct foreign inward remittance via official banking channel from outside India or out of funds held in India in repatriable foreign currency or rupee account “any” maintained in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 where individuals were residents of India at time of original investments + also investments were made on “non-repatriation” basis “both”.

66. What are Clarifications for right / bonus shares?

(i) Indian companies are permitted to issue NDIs to Non-RoI other than OCBs under section 62(1)(a)(iii) of CA, 2013

(ii) Indian companies are required to obey RBI’s guidelines specified in NDI Rules, 2019 like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

67. What is Right’ Renunciation by Non-RoI?

(i) RoI + Non-RoI are permitted for fully (100%) + also partly (not 100%) shares’ renunciation “all” offered by Indian companies in favor of person(s) named by them

(ii) RoI + also Non-RoI “both” are permitted for subscribing additional shares over and above offered by Indian companies

68. What is Right’ Renunciation (RR) by OCBs?

• RR + also subscribing additional shares “both” are not available for OCBs

69. What is Right’ Purchase by Non-RoI?

(i) Non-RoI are permitted to purchase rights after RR by RoI + also Non-RoI “both” on “repatriation” basis

(ii) Indian companies are required to obey RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(iii) These purchases of rights are permitted on “non-repatriation” basis when acquired through non-repatriable funds

(iv) These Non-RoI are eligible for same rights which were available with original NDIs holders except change in “repatriation” status if any

70. What are ESOPs by Non-RoI?

(i) Indian companies are permitted to issue benefits to Non-RoI employees + directors of overseas holding company + overseas Joint Venture (JV) + wholly owned overseas subsidiary + also wholly owned overseas subsidiaries “all” like:

(a) Permitted to issue Employee Stock Options (ESOPs)

(b) Permitted to issue Sweet Equity Shares (SESs)

(c) Permitted to issue Share Based Employee Benefits (SBEBs)

(ii) These ESOPs + etc. are required to issue in accordance with regulations issued under SEBI, 1992 + also Companies (Share Capital and Debentures) Rules, 2014 “all”

(iii) These ESOPs + also etc. “both” are required to issue in accordance with RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(iv) These Sweet Equity Shares (SESs) are permitted from June 11, 2015

(v) These Share Based Employee Benefits (SBEBs) are permitted from April 12, 2022.

(vi) These Non-RoI are permitted to exercise option on “non-repatriation” basis when they have acquired being RoI on “non-repatriation” basis

(vii) Indian companies are required to compute FIs’ percentage on fully diluted basis upfront at time of issuing ESOPs + also etc. “both”

71. What is Convertible notes by ISCs?

(i) Non-RoI are permitted to invest in convertible notes to be issued by Indian Startup Companies (ISCs) for minimum INR 25 lacs in single tranche

(ii) Individual citizens + entities registered / incorporated in Pakistan + also Bangladesh “all” are not permitted to invest in these ISCs

(iii) ISCs are required to obtain’s approvals when these are engaged in sectors those are required approvals.

(iv) ISCs are required to obey RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(v) Non-RoI are required to make payments through Foreign Direct Inward Remittance (FDIR) from outside India or through debit to repatriable foreign currency accounts + also Rupee account “both” maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

(vi) (a) ISCs are required to close escrow accounts immediately after requirements are completed or within 6 months whichever is earlier

(b) These escrow accounts are not permitted to continue exceeding 6 months

(vii) NRIs + also OCIs “both” are permitted to acquire convertible notes on non-repatriation basis in accordance with NDI Rules, 2019

(viii) Non-RoI are permitted for certain activities like:

(a) For acquiring/purchasing convertible notes from RoI + also Non-RoI “both”

(b) For transferring/selling convertible notes to RoI + also Non-RoI “both”

(ix) ISCs are permitted to issue convertible notes from January 10, 2017

(x) ISCs are permitted to convert convertible notes into equity shares or be paid within maximum 10 years from date of issue whichever is later.

(xi) (a) Non-RoI are permitted to remit outside India against proceeds received for repayment from ISCs + also sale from buyers “both”

(b) Also permitted to deposit in repatriable foreign currency account + also Rupee account “both” maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

72. What are FIs in Merger by Non-RoI?

• Non-RoI are permitted for acquiring NDIs under scheme of compromise + arrangement + merger + amalgamation of minimum 2 Indian companies + reconstruction through merger + also otherwise “all” subject to satisfying certain conditions like:

(i) Indian companies are required to obey RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(ii) Indian companies are required to report to AD-I Category Banks in form FC-GPR for issue or FC-TRS for transfer “any”

(iii) Indian companies are required to obtain’s approval when FIs are exceeding Sectoral caps + also mandatory conditions are not satisfied “both”

(iv) Indian companies are not permitted for FIs in prohibited sectors

(v) Listed Indian companies are required to comply SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015 amended from time to time

(G) RBI’s Transfers from Non-RoI

73. What are Transfers from Non-RoI to RoI?

• Non-RoI are permitted to transfer NDIs + units to RoI in accordance with NDI Rules, 2019 + also subject to satisfying certain conditions “all”

74. What are Transfers through sale / gift from Non-RoI to RoI?

(i) Non-RoI are permitted to transfer NDIs + units through sales + gifts to RoI in accordance with NDI Rules, 2019 + also subject to satisfying certain conditions “all”

(ii) These Non-RoI are required to obtain’s approval when sectoral caps are exceeding or mandatory conditions are not satisfied “any”

75. What are Transfers from FPI to RoI?

(i) Foreign Portfolio Investors (FPIs) are required to sale NDIs within 5 trading days after settlement when exceeding aggregate FPIs limits or sectorial limits “any”

(ii) These sales are not to consider contravention under NDI Rules, 2019 when sale is made within 5 trading days after settlement when exceeding aggregate FPIs limits or sectorial limits “any”

(iii) These sales are required to made in accordance with SEBI’s guidelines + also RBI’s guidelines issued vide P. (DIR Series) Circular No. 19 dated November 11, 2024 “both”.

76. What are Transfers from OCBs to RoI?

• Overseas Corporate Bodies (OCBs) are permitted to transfer NDIs to RoI in accordance with A.P (DIR Series) Circular No. 44 dated December 8, 2003 + also AP (DIR Series) Circular No.14 dated September 16, 2003 “both”

77. What are Transfers through sale / gift from NRIs to RoI?

(i) NRIs + OCIs are permitted to transfer NDIs + also units “all” through sale or gift to RoI when originally acquired on “repatriation”

(ii) These NRIs + also OCIs “both” are required to obtain’s approval when Indian companies are engaged in prohibited sectors.

These NRIs + also OCIs “both” are required to sale NDIs within 5 trading days after settlement when exceeding aggregate NRIs / OCIs limits

(iii) These sales are not to consider contravention under NDI Rules, 2019 when sale is made within 5 trading days after settlement when exceeding aggregate NRIs / OCIs limits

78. What are Transfers through sale / gift from NRIs to Non-RoI?

(i) NRIs + OCIs are permitted to transfer NDIs + also units “all” through sale or gift to Non-RoI on “repatriation” basis subject to satisfying RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(ii) (a) NRIs + OCIs are permitted to transfer NDIs + also units “all” through sale or gift to Non-RoI on “non-repatriation” basis

(b) NRIs + also OCIs “both” are permitted to transfer “without” satisfying RBI’s guidelines when sale or gift to Non-RoI on “non-repatriation” basis

79. What are Transfers through sale / gift from NRIs/OCIs to NRIs/OCIs?

• NRIs + OCIs + Companies + Trusts + Partnership Firms incorporated outside India + owned + control by NRIs + OCIs are permitted to gift NDIs + units as donors to another NRIs + also OCIs “all” on “non-repatriation” basis “only” when donors are holding on “non-repatriation” basis

80. What are Transfers through sale / gift from Non-RoI to RoI?

(i) Non-RoI are permitted to transfer NDIs + also units “both” through sale or gift to RoI subject to satisfying RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(ii) Non-RoI are permitted to sale NDIs + also units “both” through recognized exchange(s) to RoI in accordance with SEBI’s guidelines

81. What are Transfers through gift from NRIs/OCIs to Non-RoI?

• NRIs / OCIs are permitted to gift NDIs + units as donors to Non-RoI when they are holding on “non-repatriation” basis after RBI’s approval + also subject to satisfying certain conditions “all” like:

(i) When gift is not exceeding 5% of paid-up equity capital of Indian companies or each series of debentures or each mutual fund scheme “any” + also 5% is cumulative for 1 donor to 1 donee “both”.

(ii) When sectoral cap of Indian companies are not crossed.

(iii) When donor + also donee “both” are relatives as defined in section 2(77) of CA, 13

(iv) When value of these securities is not exceeding USD 50 thousand from 1 donor to all donees in 1 financial year

(v) When application for RBI’s approval is made through AD Bank-I to concerned RBI’s Regional Office (RO) where registered office of Indian companies are operated.

82. What are Transfers with optional clause from Non- RoI to RoI?

(i) Non-RoI are permitted to exist “without” any assured return when NDIs of Indian companies having optional clause in accordance with NDI Rules, 2019 + also exercising option / right “both”

(ii) These exists are permitted subject to pricing guidelines prescribed under NDI Rules, 2019 + also minimum locking period for 1 year or locking period prescribed under NDI Rules, 2019 whichever is higher.

83. What are Transfers on deferred payment from RoI to Non-RoI?

(i) Transfers of NDIs are permitted between RoI and Non-RoI when amount is not exceeding 25% of total consideration subject to satisfying certain conditions like.

(a) When deferred payments’ time is not exceeding 18 months from date of transfer agreement

(b) When these deferred payments are to be settled through escrow arrangement between buyer and seller

(c) When these deferred payments are indemnified by seller

(ii) These deferred payments are permitted when share purchase / transfer agreement is containing respective clause + also related conditions “both”

(iii) These total considerations are required to be in accordance with applicable pricing guidelines.

84. What are Escrow accounts for Non-RoI?

(i) Non-RoI are permitted to open Escrow account in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 for purchase of NDIs from RoI

(ii) (a) Non-RoI are required to send remittance from outside India through official banking channel

Or

(b) Non-RoI are required to obtain guarantees from AD Category-I banks subject to terms and conditions specified in Foreign Exchange Management (Guarantees) Regulations, 2000

(iii) Non-RoI are required to obey SEBI’s guidelines / regulations for operating Escrow accounts when transactions are governed by SEBI.

85. What are Pledges by Indian companies?

• Indian companies are permitted to pledge NDIs for securing External Commercial Borrowings (ECBs) in accordance with Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 subject to satisfying certain conditions like:

(i) That pledges’ periods are required to match with securities maturity’s’ period kept for underlying assets against ECBs

(ii) That pledge’s invocations are to be in accordance with NDI Rules, 2019

(iii) That Indian companies are required to obtain Statutory Auditors’ certificate for permissible end-use only

(iv) That Indian companies are required to obtain No Objection Certificates (NOCs) from AD Category-I Banks for certifying about abovementioned conditions are complied

86. What are Pledges for Indian banks by Non-RoI?

• Non-RoI are permitted to pledge NDIs for securing credit facilities taken by Indian companies in accordance with Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 subject to satisfying certain conditions like:

(i) That pledge’s invocations are to be made in accordance with instructions given at time of pledge’s creation.

(ii) That Non-RoI are required to obtain Statutory Auditors’ certificate for using permissible end-use only

(iii) That Indian companies are required to obey SEBI’s disclosures norms

(iv) That pledges are required to be in accordance with Section 19 of Banking Regulation Act, 1949

(v) That these conditions under (i) to (iv) are to be applied wherever applicable.

87. What are Pledges for overseas banks by Non-RoI?

• Non-RoI are permitted to pledge NDIs for securing credit facilities to be taken by themselves or by Non-RoI promoters or by overseas group companies in accordance with Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 subject to satisfying certain conditions like:

(i) That loan is availed from overseas banks “only”

(ii) That loan is utilized for genuine business purposes overseas not for direct or indirect investments in India.

(iii) That overseas’ investments are not linked with capital inflow in India

(iv) That pledge’s invocations are to be made in accordance instructions given at time of pledge’s creation

(v) That Non-RoI are required to obtain from Statutory Auditors’ certificate or Certified Public Accountant (CPA) for using permissible end-use “only”

(vi) That these conditions under (i) to (v) are to be applied if applicable.

88. What are Pledges for NBFCs by Non-RoI?

• Non-RoI are permitted to pledge NDIs for securing credit facilities taken by Indian companies in accordance with Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 subject to satisfying certain conditions like:

(i) That pledge’s invocations are to be made in accordance with credit concentration norm as stated in Master Direction – Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 (Para 22) + also Master Direction – Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 (Para 22) “both”

(ii) That AD Category-I banks “may” required to obtain Board of Directors (BoDs) resolutions for using permissible end-use “only”

(iii) That AD Category-I banks “may” required to obtain Statutory Auditor Certificates (SACs) for using permissible end-use “only”

(iv) That Indian companies are required to obey SEBI disclosure norms

(v) That pledge’s invocations are to be made through sale of pledge NDIs within 30 days from date of invocations

89. What are Pledges’ compliances for AD Category-I Banks?

• AD Category-I banks are required to ensure pledges’ compliances against stipulated conditions like:

(i) That NDIs + also units “both” are required to un-encumber when transferred through pledge.

(ii) That Indian companies are required to obtain NOC from existing lenders if any.

(iii) That pledge invocations are required to activate in accordance with RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

90. What are Pledges’ compliances for RBI?

• Indian companies are required to obtain RBI’s approval for other pledging after submitting certain documents like:

(i) Copy of BoDs’ resolutions passed by Non-RoIs companies approving securities’ pledge where securities were acquired in accordance with NDI Rules, 2019 for securing credit facilities in favor of lenders

(ii) Copy of BoDs’ resolutions passed by Indian companies approving securities pledge where securities were acquired in accordance with NDI Rules, 2019 for securing credit facilities in favor of lenders

(iii) Copy of loan agreement / pledge agreement containing security clause + also duly certified by Company Secretary (CS) for securing credit facilities in favor of lenders

(iv) 100% details for facilities already availed + also to be availed “both”

(v) 100% details for NDIs acquisitions’ reporting in accordance with NDI Rules , 2019.

91. What are Transfers for financial sector from RoI to Non-RoI?

• AD Category-I Banks are required to perform fit and proper / due diligence exercised as stipulated by respective financial sector regulator for Non- RoI when transfer of NDIs of companies engaged in financial sector from RoI to Non-RoI

92. What are payments’ mode for Non-RoI?

(i) Non-RoI are permitted to make payments through direct foreign remittance from outside India for purchase of NDIs from RoI

(ii) Non-RoI are “also” permitted to make payments through repatriable foreign currency accounts + Rupee accounts “both” maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 for purchase of NDIs from RoI

(iii) Non-RoI are “also” permitted to make payments through Non-Resident Ordinary (NRO) accounts maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 for purchase of NDIs from RoI

93. What are Equity swap for Non-RoI?

(i) Non-RoI are permitted to receive transfers of Indian companies’ NDIs through Swap in accordance with compliances + rules as prescribed by Central govt. + also regulations specified by RBI from time to time “all”.

(ii) Non-RoI are permitted to receive transfers of “foreign” companies’ NDIs through Swap in accordance with compliances + rules as prescribed by Central govt. + Foreign Exchange Management, (Overseas Investment) Rules, 2022, + also regulations specified by RBI from time to time “all”

(iii) Non-RoI are required to obtain’s approval “if applicable”

94. What are Clarifications for Transfers from Non-RoI + to Non-RoI?

• Equity capital to include meaning as assigned in Foreign Exchange Management (Overseas Investment) Rules, 2022 as amended from time to time.

(H) RBI’s Pricing Guidelines

95. What are Issues to Non-RoI?

(i) Indian companies are not permitted to issue “non-convertible” NDIs lower than certain computed prices like:

(a) Not permitted to issue “non-convertible” NDIs lower than prices computed in accordance with relevant SEBI’s guidelines for listed Indian companies + also for companies those are going through delisting process under SEBI (Delisting of Equity Shares) Regulations, 2009

(b) Not permitted to issue “non-convertible” NDIs lower than prices computed in accordance with “internationally” accepted pricing methodology for valuation on Arm’s Lenth Price (ALP) basis duly certified by Chartered Accountant (CA) or SEBI’s registered Merchant Banker or practicing Cost Accountant for unlisted Indian companies

(ii) (a) Not permitted to issue “convertible” NDIs without determining conversion prices

(b) Not permitted to convert “convertible” NDIs lower than fair value computed at time of issuing NDIs

96. What are Transfers to Non-RoI?

• Indian companies are not permitted to transfer “non-convertible” NDIs lower than certain computed prices like:

(i) Not permitted to transfer “non-convertible” NDIs lower than prices computed in accordance with relevant SEBI’s guidelines for listed Indian companies + also for companies those are going through delisting process under SEBI (Delisting of Equity Shares) Regulations, 2009

(ii) Not permitted to transfer “non-convertible” NDIs lower than prices computed in accordance with “internationally” accepted pricing methodology for valuation on

Arm’s Lenth Price (ALP) basis duly certified by Chartered Accountant (CA) or SEBI’s registered Merchant Banker or practicing Cost Accountant for unlisted Indian companies

97. What are Transfers to RoI?

• Indian companies are not permitted to transfer “non-convertible” NDIs higher than certain computed prices like:

(i) Not permitted to transfer “non-convertible” NDIs higher than prices computed in accordance with relevant SEBI’s guidelines for listed Indian companies + also for companies those are going through delisting process under SEBI (Delisting of Equity Shares) Regulations, 2009

(ii) Not permitted to transfer “non-convertible” NDIs higher than prices computed in accordance with “internationally” accepted pricing methodology for valuation on Arm’s Lenth Price (ALP) basis duly certified by Chartered Accountant (CA) or SEBI’s registered Merchant Banker or practicing Cost Accountant for unlisted Indian companies

98. What are Swap to Non-RoI?

(i) Indian companies are not permitted to transfer “non-convertible” NDIs beyond computed prices by Merchant Banker registered with SEBI in India

Or

(ii) Computed prices by Merchant Banker registered with appropriate regulate authority in host country located outside India.

99. What are MoA’s subscription by Non-RoI?

• Indian companies are permitted to issue “non-convertible” NDIs at face value to Non-RoI for after satisfying entry route + also sectoral cap “both” for subscription to Memorandum of Article (MoA).

100. What are Partly paid by Non-RoI?

• Indian companies are required to issue partly paid shares at price determined upfront

101. What are Warrants by Non-RoI?

(i) Indian companies are required to issue shares warrants at price determined upfront

(ii) These determined prices are required not lower than fair value computed at time of issue of share warrants

102. What are FIs in LLPs by Non-RoI?

(i) Indian LLPs are required to allow capital contributions or share in LLP’s profits at price determined upfront

(ii) These determined prices are required not lower than fair value computed in accordance with valuation norm as “internationally” accepted or adopted as market practice + also valuation certificate “both” issued by Chartered Accountant (CA) or Practicing Cost Accountant (PCA) or approved valuer from panel maintained by Central Government

103. What are FIs through transfers in LLPs to Non-RoI?

(i) Indian LLPs are not permitted to allow capital contributions or share in LLP’s profits at price lower than fair value for transfer from RoI to Non-RoI

(ii) Indian LLPs are not permitted to allow capital contributions or share in LLP’s profits at price higher than fair value for transfer from Non-RoI to RoI

104. What is non-applicability for Non-RoI?

(i) RBI’s pricing guidelines are not applicable for FIs in NDIs by Non-RoI on “non-repatriation” basis.

(ii) (a) Not applicable “also” for transfer through sale in accordance with SEBI’s regulations where pricings are prescribed by SEBI

(b) Indian companies are required to obtain certificates from CA for ensuring that SEBI’s regulations / guidelines have been complied + also to be attached with form FC-TRS to be filed with AD Category-I Banks

105. What is valuation certificate’s validity for Non-RoI?

(i) Valuation certificates are valid when issued by CAs or SEBI registered Merchant Bankers or PCAs + also not older than 90 days from date of FIs “both”

(ii) These certificates are valid when issued in accordance with SEBI’s guidelines.

106. What are Indirect FIs (IFIs) by Non-RoI?

(i) Foreign downstream investments are known indirect FIs (IFIs) therefore RBI’s guidelines are same as applicable for direct FIs.

(ii) RBI’s guidelines are applicable for direct + indirect “both” FIs like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(iii) RBI’s guidelines for swap of NDIs + payment arrangements are applicable for direct + indirect FIs “all”

(iv) Indirect FIs are required not to circumvent provisions contained in Rule 23 + also restrictions on indirect FIs for use of borrowed funds obtained through foreign downstream investments / IFIs.

(I) RBI’s Key Terms

107. What is Ownership for Non-RoI?

(i) Indian companies’ ownerships are treated when beneficial holding is exceeding 50% of company’s NDIs

(ii) Indian LLPs ownerships are treated when capital contribution + also profit’s shares “both” are exceeding 50% of LLP’s capital

108. What is Company’s ownership by RICs?

• Indian companies owned by resident Indian citizens are treated when beneficial holdings are held by resident Indian citizens + also Indian companies “both” exceeding 50% company’s NDIs

109. What is LLP’s ownership by RICs?

• Indian LLPs owned by resident Indian citizens are treated when beneficial holdings are held by resident Indian citizens + also Indian companies “both” exceeding 50% LLP’s capital contributions

110. What is Company’s owned by Non-RoI?

• Indian companies owned by Non-RoI are treated when beneficial holdings are held by Non-RoI + also foreign companies “both” exceeding 50% company’s NDIs

111. What is LLP’s owned by Non-RoI?

• Indian LLPs owned by Non-RoI are treated when beneficial holdings are held by Non-RoI + also foreign companies “both” exceeding 50% LLP’s capital contributions

112. What is Control for Non-RoI?

• Control of companies are treated when right to appoint “majority” directors or control of management or policy decisions or management rights or shareholders agreements or voting agreements “any”

113. What is LLP control by Non-RoI?

• Control of LLPs are treated when right to appoint “majority” designated partners or control of management or policy decisions or management rights “any”

114. What is Control by RICs?

• Control of companies by RICs are treated when controls are in hands of RICs + also Indian companies “both” are ultimately owned & controlled by RICs.

115. What is LLP control by RICs?

• Control of LLPs by RICs are treated when controls are in hands of RICs + also Indian entities “both” are ultimately owned & controlled by RICs.

116. What is Control by Non-RoI?

• Control by Non-RoI are treated when controls are in hands of Non-RoI + also “foreign” entities “both” are ultimately owned & controlled by Non-RoI.

117. What is LLP control by Non-RoI?

• Control of LLPs by Non-RoI are treated when controls are in hands of Non-RoI + also Indian entities “both” are ultimately owned & controlled by Non-RoI.

118. What is IFIs by Non-RoI?

• Foreign downstream investments / IFIs by Non-RoI are treated when investments are made by 1^st Indian entity in 2^nd Indian entity where 1^st entity has received FIs in Indian companies’ NDIs or in Indian LLP’s capital contributions

119. What is Holding companies by Non-RoI?

• Holding companies are having same meaning as defined in CA, 2013

120. What is IFIs for Non-RoI?

• IFIs by Non-RoI are treated when 2^nd Indian entity has received “Indian” investments from 1^st Indian entity where 1^st Indian entity has received “Foreign” Investments (FIs)

121. What are Clarifications for Key Terms?

(i) Foreign Downstream investments / IFIs are “also” treated when original investments were received from RoI but later on RoI became Non-RoI. IFIs are treated from date of becoming Non-RoI

(ii) Indian companies are required to obey RBI’s guidelines. Non-RoI (investors) are required to report in Form-DI for reclassification within 30 days. Abovementioned RBI’s guidelines are as under:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(iii) (a) Indian investments (IIs) are treated beside investments are made by NRIs / OCIs or by Companies + Trusts + Partnership Firms are incorporated outside India + owned + also controlled by NRIs / OCIs

(b) These investments are not treated IFIs therefore schedule IV of NDIs 2019 are applicable for Investments by NRIs / OCIs on “non-repatriation” basis.

122. What is Total FIs by Non-RoI?

• Total FIs are to include direct + also indirect “both” FIs on fully diluted basis

123. What is Strategic Downstream Investments (SDIs) by Banking companies?

• SDIs are to include “Indian” downstream investments by banking companies incorporated “in India” + their subsidiaries + joint ventures + also associates “all”

124. What is IFIs’ Prohibition for Non-RoI?

(i) RoI “other than” Indian entities are not permitted to receive IFIs

(ii) “Other than” Indian entities are to include Indian companies + also Indian LLPs “both” those are permitted to receive IFIs

125. What is Companies’ IFIs by Non-RoI??

• Indian companies are required to obey RBI’s guidelines for receiving IFIs. These RBI’s guidelines are as under:

(i) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(ii) Guidelines for sectoral caps

(iii) Guidelines for statutory caps

(iv) Guidelines for investments’ limits

(v) Guidelines for pricings

(vi) Guidelines for other mandatory conditions

126. What is LLPs’ IFIs by Non-RoI?

(i) Indian LLPs are required to obey RBI’s guidelines for receiving IFIs. These guidelines are as under:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

(ii) Indian LLPs are permitted to receive IFIs when 100% FIs are permitted in NDIs of Indian companies where “automatic” route is permitted + also FDI linked performance conditions are not required.

127. What is IFIs’ compliances by companies?

(i) Indian companies are required to obtain approval from BoDs for IFIs

(ii) These companies are required to bring requisites funds from outside India

(iii) These companies are not permitted to use borrowed funds in domestic markets.

(iv) Subscriptions from Non-RoI for “non-convertible” debentures are not treated borrowed funds or leveraged in domestic markets

(v) These companies are required to comply FEMA, 1999 + Rules for raising debts + also its utilizations “all”

128. What is Deemed IFIs by Non-RoI?

(i) IFIs are treated when 1^st Indian companies are investing in 2^nd Indian companies without having proper business operations

(ii) These 2^nd Indian companies are required to comply RBI’s guidelines for FIs like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other mandatory conditions

129. What is IFIs under CDR by Non-RoI?

(i) IFIs are treated from July 31, 2012 when banking companies as defined under section 5(c) of Banking Regulations Act, 1949 are investing in certain debts like:

(a) Investing in Corporate Debt Restructuring (CDR) mechanism

(b) Investing in Other Loan Restructuring (OLR) mechanism

(c) Investing in Trading Book (TB) mechanism

(d) Investing in acquisition of shares when defaults in loans

(ii) Strategic downstream investments by these banking companies are to be treated IFIs

130. What is Total FIs by Non-RoI?

(i) To include 100% equity holdings by Non-RoI as acquired “after” conversion from debt instruments under agreements / arrangements for computing total FIs

(ii) Not to include 100% debt instruments issued as underlying assets for issuing Foreign Currency Convertible Bonds (FCCBs) + also Deposit Receipts (DRs) for computing total FIs

(iii) To include 100% Foreign Portfolio Investments (FPIs) as held on March 31 of previous financial year in Indian companies those are making foreign downstream investments / IFIs for computing total FIs

(iv) To include 100% IFIs received by wholly (100%) owned subsidiary of Indian company for computing total FIs

(v) Methodology for computing total FIs is to be applied at each stage of investments in Indian companies for each company.

131. What is Transfer’s compliances by Non-RoI?

• Transferors are permitted to transfer NDIs / capital contributions of 1^st Indian companies / 1^st Indian LLPs as held by 2^nd Indian companies / 2^nd Indian LLPs where FIs are owned / controlled by Non-RoI subject to satisfying certain conditions like:

(i) (a) These Non-RoI are required to report in Form-FCTRS when transfers are made from Non-RoI to Non-RoI

(b) Pricing guidelines are not applicable when transfers are made from Non-RoI to Non-RoI

(ii) (a) These Non-RoI are required to report in Form-FCTRS when transfers are made from Non-RoI to RoI

(b) Pricing guidelines are applicable when transfers are made from Non-RoI to RoI

132. What is Compliance’s responsibility by Non-RoI?

(i) 1^st level Indian companies / 1^st level Indian LLPs those making foreign downstream investments / IFIs are responsible for ensuring compliances under FEMA, 1999 + also Rules “both”

(ii) These companies / LLPs are required to obtain FEMA compliance’s annual certificates from Statutory Auditors

(iii) These companies / LLPs are required to mention in Directors Reports under FEMA’s compliances

(iv) These Statutory Auditors are required to inform RBI’s Regional Office (RO) when certificates are issued as qualified reports by them

133. What is IFIs’ applicability for Non-RoI?

(i) Indian companies / LLPs are not required to modify to conform to NDI Rules, 2019 when foreign downstream investments / IFIs made before Feb 13, 2009

(ii) Indian companies / LLPs are required to modify to conform to NDI Rules, 2019 + also to inform RBI up to October 03, 2013 when foreign downstream investments / IFIs made from Feb 13, 2009 to June 21, 2013

(J) RBI’s Taxes + Remittances

134. What are Taxes by Non-RoI?

• 100% FIs’ transactions are required to undertake through official banking channel + payment of applicable taxes + also duties / levies in India “all”

135. What are Remittances by Non-RoI?

(i) 100% sale proceeds’ remittances are required to made in accordance with NDI Rules, 2019

(ii) AD Category-I Banks are required to remit sale proceeds’ remittances to Non-RoI after deducting applicable taxes subject to satisfying RBI’s guidelines like:

(a) That securities were held on “repatriation” basis

(b) That securities were sold in accordance with RBI’s pricing guidelines

Or

(c) That RBI’s approval is required to obtain when RBI’s pricing guidelines are not obeyed

(K) RBI’s Clarifications

136. What are Clarifications for Non-RoI?

(i) Indian companies / LLPs + also Non-RoI “both” are permitted to make request to AD Category-I Banks for FIs’ clarifications

(ii) These banks are required to forward request to RBI’s RO for FIs’ clarifications

(iii) These Indian companies / LLPs + also Non-RoI “both” are required to submit relevant documents to AD Category-I Banks for FIs’ clarifications

(iv) Jurisdiction for RBI’s RO is required to make in accordance with Registered office of Indian companies / LLPs

•Purchases/Sales of equity by Non-RoI (Annex-1•

137. What are Purchases on stock exchange(s)?

• Non-RoI are permitted to purchase NDIs of listed Indian companies’ on stock exchange(s) subject to satisfying RBI’s guidelines:

(i) That Non-RoI are making investments have already acquired control of Indian companies in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 + also continues to hold this control “both”.

(ii) (a) That consideration’ amount are required to pay in accordance with RBI’s guidelines or to pay out of dividend payable by Indian companies where Non-RoI have acquired + also continue to hold this control “both” in accordance with SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011

(b) Also right to receive dividends are established + also dividend amounts are credited to Special Non-Resident Rupee (SNRR) account opened in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 for acquisition of shares on recognized stock exchange(s)

138. What are Purchases WOS’ shares?

• Non-RoI are permitted to purchase shares from Wholly Owned Subsidiary (WOS) as set-up in India by them + operating in sector where FIs are allowed under “automatic” route + also FDI linked performance conditions are not applicable against pre-incorporation + also preoperative expenses incurred by them maximum 5% of authorized capital or USD 5 lacs whichever is lower subject to satisfying RBI’s guidelines like:

(i) Indian companies are required to file FC-GPR with AD Category-I Banks within 30 days from date of issue of NDIs or not more than 1 year from date of incorporation whichever is later

(ii) Indian companies are required to obtain certificate from Statutory Auditors for amount of pre-incorporation + also pre-operative “both” expenses in accordance with amount filled in FC-GPR

(iii) These pre-incorporation + pre-operatives expenses are to include amounts as remitted to Indian companies’ accounts in India or to investors’ accounts in India + to consultants + to attorneys + also for other materials / service providers against incorporation or commencement of business / operations.

139. What are Shares’ issue by WOSs?

(i) WOSs in India set-up by Non-RoI are permitted to issue NDIs to Non-RoI when WOSs are operating in sectors where 100% FIs are permitted under “automatic” route + also FDIs linked performance conditions not applicable “both”

(ii) WOSs in India are permitted to issue NDIs against certain expenses like:

(a) Pre-incorporation expenses incurred by Non-RoI

(b) Pre-operative expenses incurred by Non-RoI

(iii) WOSs in India are permitted to issue NDIs to Non-RoI against these expenses maximum 5% of authorized capital or USD 5 lac whichever is lower subject to satisfying certain conditions like:

(a) That WOSs in India are required to file forms FC-GPR as prescribed in Master Director for issuing NDIs’ reporting within 30 days from date of issue of NDIs or within 1 year from date of incorporation whichever is earlier

(b) That WOSs in India are required to obtain certificates from Statutory auditors for amount of pre-incorporation + also pre-operative “both” expenses

(c) That WOSs in India are required to obtain certificates from Statutory auditors for utilization against pre-incorporation + also pre-operative “both” expenses in accordance with amount filled in forms FC-GPR were filed

140. What are Pre-incorporation / pre-operative?

• Pre-incorporations expenses + also pre-operatives “both” expenses are to include certain expenses like:

(i) Amount paid to Indian companies’ accounts as maintained in India

(ii) Amount paid to investors’ accounts as maintained in India

(iii) Amount remitted / paid outside India or paid in India to certain persons like:

(a) Remitted / paid to consultant outside India / in India

(b) Remitted / paid to attorney outside India / in India

(c) Remitted / paid to other material providers + service providers outside India / in India for expenditures incurred against incorporations + also commencement of operations / businesses

141. What are Issue’s other modes?

• Indian companies are permitted to issue NDIs to Non-RoI against permissible funds payable in accordance with FEMA, 1999 + FEMA’s rules + FEMA’s regulations + also FEMA’s directions “all” subject to satisfying certain conditions like:

(i) When Indian companies are not required to obtain ’s approval for certain matters like:

(a) For issuing NDIs against import dues which are treated deemed as ECB

(b) For issuing NDIs against trade credits

(c) For issuing NDIs against trade payables for 2^nd hand machineries’ imports

(ii) When Indian companies are permitted to issue NDIs to Non-RoI after payment of taxes against funds payable + also conversion into NDIs “both”

(iii) When Indian companies are permitted to issue NDIs to Non-RoI against “any” fund payable to them where 100% remittances are permitted by RBI under FEMA, 1999 + FEMA’s rules + FEMA’s regulations + also FEMA’s directions “all”

(iv) When Indian companies are permitted to issue NDIs to Non-RoI where RBI’s approvals are obtained to remit subject to satisfying certain conditions like:

(a) That 100% regulatory actions for delay are compliance / completed

(b) That 100% contraventions under FEMA, 1999 + FEMA’s rules + FEMA’s regulations + also FEMA’s directions “all” are completed

(v) That Indian companies are permitted to issue NDIs to Non-RoI subject to compliances with rules prescribed by govt. of India + also regulations specified by RBI against certain matters like:

(a) Swap of NDIs

(b) Swap of equity capital of foreign companies in accordance with rules prescribed by govt. of India + by Foreign Exchange Management, (Overseas Investment) Rules 2022, + also regulations specified by RBI “all”.

(c) Import of capital goods + machineries + also equipment “all” but excluded import of 2^nd hand machineries subject to satisfying certain criteria like:

• That these imports are made by RoI in accordance with Foreign Trade Policy (FTP) notified by Directorate General of Foreign Trade (DGFT) + also imports’ regulations issued under FEMA, 1999 “both”
• That valuations for these imports are obtained from 3^rd party like independent valuer from country of import + also production of copies of documents/certificates issued by customs authorities for imports’ fair-value assessments.

142. What are Applications for approvals?

• Applications are required to accompany with valuations for imports as obtained from 3^rd party like independent valuer from country of import + production of copies of documents/ certificates issued by customs authorities for imports’ fair-value assessments + also companies’ special resolutions “all”

(i) Applications are required to indicate Beneficial Ownership (BO) + identity of importer companies + also overseas entities “all”

(ii) Applications are required to submit within 180 days from date of shipment of goods.

143. What are Payments for pre-incorporations?

• WOSs are permitted to make payments for pre-incorporations expenses + pre-operatives’ expenses + rent + also etc. “all” subject to satisfying certain conditions like:

(i) WOSs are required to obtain certificate from Statutory auditors for verifications + also certifications “both” against pre-incorporation / pre-operative expenses

(ii) WOSs are required to submit Foreign Inward Remittance Certificate (FIRC) for remittance of funds by Non-RoI against pre-incorporation / pre-operative expenses

(iii) WOSs are required to receive investments from Non-RoI directly or through bank accounts opened in India by Non-RoI like SNRR accounts in accordance with FEMA, 1999 + FEMA’s rules + FEMA’s regulations + also FEMA’s directions “all”

(iv) WOSs are required to submit applications within 180 days from date of incorporations of companies for obtaining’s approval along with certain documents like:

(a) Certificate from Statutory auditors for verification of pre-incorporation / pre-operative expenses

(b) FIRC for remittance of funds from Non-RoI

(c) Evidence for FIs’ remittances received directly or through SNRR accounts

(d) Special resolutions passed by companies

144. What are Payments for DIs?

• Non-RoI are required to make payments for DIs through inward remittances from outside India via banking channel or via certain bank accounts maintained in India like:

(i) Repatriable foreign currency accounts are to include certain accounts like NRE + also FCNR (B) accounts “both” maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

(ii) Rupee accounts like NRO accounts maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

145. What are Payments for receivables?

(i) Indian companies are permitted to make payments for outstanding payables through NDIs’ issue

Or

(ii) Indian companies are permitted to swap when engaged in activities which are permitted for FIs under “automatic” route.

146. What are Refunds by companies?

• Indian companies are required to refund within 15 days when NDIs are not issued within 60 days through outward remittances via banking channels or to credit to their repatriable foreign currency accounts “any” like NREs + also FCNR(B) accounts “both” maintained under Foreign Exchange Management (Deposit) Regulations, 2016

147. What are Refunds by AD-Category-I Banks?

• AD-Category-I Banks are permitted to remit payments against abovementioned payments subject to satisfying certain conditions like:

(i) AD-Category-I Banks are required to ensure that applicants are bona fides

(ii) AD-Category-I Banks are required to ensure that funds were received in accordance with FEMA, 1999 + FEMA’s rules + FEMA’s regulations + also FEMA’s directions “all”

(iii) AD-Category-I Banks are required to ensure that interests “if any” are payable in accordance with CA, 2013.

148. What are Clarifications for DIs?

(i) Indian companies are required to obey legal compliances in accordance with NDI Rules, 2019

(ii) Indian companies are required to liable for non-compliances of instructions in accordance with NDI Rules, 2019.

(iii) Indian companies are permitted to open Foreign Currency Accounts (FCAs) with AD-Category-I Banks in India in accordance with Foreign Exchange Management (Foreign currency accounts by a person resident in India) Regulations, 2015 for issuing NDIs to Non-RoI.

149. What are Remittances for sales proceeds?

• AD-Category-I Banks are required to remit outside India or credit to repatriable FCAs + rupee accounts like NREs + FCNR(B) account + also NROs accounts maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 for sales proceeds against NDIs after deducting for taxes

•Foreign Exchange Management (Non-Debt Instruments) Rules, 2019•

(A) NDIs Rules’ Provisions

150. What is Introduction?

(i) These rules are known as Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 or NDIs Rules, 2019

(ii) Rules are applicable from date of publication in official gazette like October 17, 2019

151. What is Act?

• Act is to include Foreign Exchange Management Act (FEMA) 1999 (42 of 1999)

152. What are Asset Reconstruction Companies (ARCs)?

• ARCs are to include companies registered with RBI under section 3 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of2002)

153. What are Authorized Banks (ABs)?

• ABs are to include banks as defined in Foreign Exchange Management (Deposit) Regulations, 2016

154. What are Authorized Dealers (ADs)?

• ADs are to include person authorized under section 10(1) of FEMA, 1999

155. What are Convertible Notes (CNs)?

(i) CNs are to include debt instruments as issued by startup companies incorporated in India being acknowledgement against receipt of money initially as debt + also repayable at holder’s option “both”

Or

(ii) Convertible in equity shares within maximum 10 years from date of issue of CNs or specified events’ occurrence in accordance with terms and conditions as agreed + also indicated in instrument “both” whichever is earlier.

156. What are Debt instruments (DIs)?

• DIs are to include 100% DIs as defined in 2(ai) of NDI Rules, 2019

157. What are Depository Receipts (DRs)?

• DRs + Global Depository Receipts (GDRs) defined in CA, 2013 (18 of 2013) are to include foreign currency denominated instruments as issued by foreign depositories in permissible jurisdictions along with underlying eligible securities issued or transferred to foreign depositories + also deposited with Indian custodian “all”

158. What are Domestic Custodians (DCs)?

• DCs are to include custodians for securities registered with SEBI in accordance with SEBI (Custodian of Securities) Regulations, 1996

159. What are Domestic Depositories (DDs)?

• DDs are to include custodians for securities registered with SEBI + also authorized by issuing entities for Indian Depository Receipts (IDRs).

160. What are Employee Stock Options (ESOPs)?

• ESOPs are to include option as defined in CA, 2013 + also issued in accordance with SEBI’s regulations

161. What are Equity Instruments (EIs)?

• EIs are to include certain instruments like:

(i) Equity shares issued by Indian companies

(ii) Convertible debentures issued by Indian companies

(iii) Preference shares issued by Indian companies

(iv) Share warrants issued by Indian companies

162. What are Clarifications for NDI Rules, 2019?

(i) NDIs are to include certain instruments like:

(a) Equity shares are “also” to include partly paid shares

(b) Convertible debentures are “only” to include fully paid debentures

(c) Preference shares are “only” to include fully paid shares

(d) Share warrants are “only” to include warrants issued by Indian companies in accordance with SEBI’s regulations(e) NDIs are to include instruments issued optionally with minimum locking period 1 year or prescribed period for specific sector whichever is higher without having option or right to exit at assured price.

(ii) Partly paid equity shares are to include certain shares like:

(a) Partly paid equity shares to Non-RoI are required to fully paid within 12 months from date of issue or specified by RBI from time to time

(b) Minimum 25% amount of equity shares + also share premium “both” are required to receive upfront against partly paid equity shares from Non-RoI

(iii) Shares warrants are to include certain warrants like:

(a) Minimum 25% amount of share warrants are required to receive upfront against shares warrants from Non-RoI

(b) Maximum 75% amount of share warrants are required to receive from Non-RoI within maximum 18 months from date of issue of warrants

163. What are Escrow Accounts (EAs)?

• EAs are to include accounts maintained in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

164. What are FDI Linked Performance requirements (FLPCs)?

• FLPCs are to include requirements as sector wise specified in schedule-I of NDI Rules, 2019 for receiving FIs by Indian companies

165. What are Foreign Venture Capital Investors (FVCIs)?

• FVCIs are to include foreign investors incorporated + established outside India + also registered with SEBI in accordance with Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000 “all”

166. What are Foreign Central Banks (FCBs)?

• FCBs are to include institutions + organizations + also body corporates “all” established outside India + also entrusted with responsibility of carrying Central bank functions under law for time being in force outside India like RBI in India

167. What are FCNR (B) Accounts?

• Foreign Currency Non-Resident (FCNR) (Bank) accounts are to include accounts as maintained in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

168. What are Foreign Currency Convertible Bonds (FCCBs)?

• FCCBs are to include bonds issued in accordance with Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993;

169. What are Foreign Direct Investments (FDIs)?

(i) FDIs are to include investments through NDIs by Non-RoI in unlisted Indian companies

Or

(ii) Minimum 10% post issue of paid-up equity capital on fully diluted basis in listed Indian companies.

170. What is FDI below 10% capital?

• FIs are still treated FDIs when existing NDIs are falls below 10% post issue of paid-up equity capital on fully diluted basis in listed Indian companies

171. What is Fully Diluted Basis (FDB)?

• Fully diluted basis is to include total number of shares outstanding when 100% possible sources of conversion are exercised

172. What are Foreign Investments (FIs)?

(i) FIs are to include investments made by Non-RoI in Indian companies’ NDIs on “repatriation” basis

Or

(ii) Investments made by Non-RoI in Indian LLPs’ capital on “non-repatriation” basis

173. What are Beneficial Ownerships (BOs)?

• Investments are treated FIs beside made through RoI when Non-RoI are BOs + also submitted declarations by them in accordance with CA, 2013 / other applicable law

174. What are FDIs versus FPIs?

(i) Non-RoI are permitted to hold FIs through FDIs or FPIs “any” in 1 Indian company.

(ii) Non-RoI are not permitted to hold FIs through FDIs + FPIs “both together” simultaneously in 1 Indian company

175. What are Foreign Portfolio Investments (FPIs)?

(i) FPIs are to include investments made by Non-RoI through listed NDIs when investments are less than 10% of post issue paid-up share capital on fully diluted basis

Or

(ii) When investments are less than 10% of paid-up value for each series of listed NDIs

176. What are Foreign Portfolio Investors (FPIs)?

• FPIs are to include persons registered in accordance with Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014

177. What are approvals?

(i) Govt. approvals are to include approvals from Secretariat for Industrial Assistance (SIA) Department of Industrial Policy and Promotion Government of India

Or

(ii) From Foreign Investment Promotion Board (FIPB)

Or

(iii) From Ministry or department of Government of India

178. What are Group companies?

• Group companies are to include minimum 2 companies those are directly or indirectly in position to exercise certain powers like:

(i) When 1^st company / LLP is having power to exercise minimum 26% voting rights in 2^nd company / LLP

Or

(ii) When 1^st company / LLP is having power to appoint minimum 50% BoDs’ members in 2^nd company / LLP

179. What are Hybrid securities?

• Hybrid securities are to include certain instruments issued by Indian companies or Indian trusts “any” to Non-RoI like:

(i) Optionally / partially convertible preference shares

(ii) Optionally / partially convertible debentures

(iii) Optionally / partially other instruments specified by Central govt. from time to time.

180. What are Indian companies?

• Indian companies are to include companies as defined in CA, 2013 or body corporates as established or constituted under Central Act or State Act + also incorporated in India “both”

181. What are Not treated Indian companies?

• Not treated Indian companies are to include certain entities like:

(i) Indian societies are not treated Indian companies therefore not eligible to receive FIs

(ii) Indian trusts are not treated Indian companies therefore not eligible to receive FIs

(iii) Indian other entities are not treated Indian companies therefore not eligible to receive FIs

182. What are Indian Depository Receipts (IDRs)?

• IDRs are to include instruments created by companies incorporated in India + also authorized by companies incorporated outside India “both”

183. What are Indian Entities?

• Indian entities are to include Indian companies + also Indian LLPs “both”

184. What are Investing Companies?

(i) Investing companies are to include companies those are holding investments in other Indian companies directly / indirectly for investment purpose

(ii) Investing companies are not to include companies those are holding investments in other Indian companies directly / indirectly for trading purpose

185. What are Investments?

(i) Investments are to include certain activities for securities + also units “both” issued by RoI like:

(a) Subscribing for investments in NDIs + also units “both”

(b) Acquiring for investments in NDIs + also units “both”

(c) Holding for investments in NDIs + also units “both”

(d) Transferring for investments in NDIs + also units “both”

(ii) Investments are to include certain activities for DRs issued by Non-RoI when underlying securities are issued by RoI like:

(a) Acquiring for investments in DRs

(b) Holding for investments in DRs

(c) Transferring for investments in DRs

186. What are Investments on repatriation basis?

• Investment on “repatriation” basis are to include investments + sales / maturity proceeds “both” to be repatriated from India after deducting Income tax

187. What are Investment Vehicles (IVs)?

• Investment vehicles are to include entities as registered + regulated “both” in accordance with SEBI’s regulations or other authorities designated by SEBI for this purpose like:

(i) Real Estate Investment Trusts (REITs) governed by Securities and Exchange Board of India (REITs) Regulations, 2014

(ii) Infrastructure Investment Trusts (InvIts) governed by Securities and Exchange Board of India (InvIts) Regulations, 2014

(iii) Alternative Investment Funds (AIFs) governed by Securities and Exchange Board of India (AIFs) Regulations, 2012

188. What are Limited Liability Partnerships (LLPs)?

• LLPs are to include partnerships as formed + also registered “both” under Limited Liability Partnership (LLP) Act, 2008 (6 of 2009)

189. What are Listed Indian Companies (LICs)?

• LICs are to include companies having NDIs / DIs listed on recognized stock exchange(s) in India

190. What are Unlisted Indian Companies (UICs)?

• UICs are to include companies having NDIs / DIs not listed on recognized stock exchange(s) in India

191. What are Manufactures?

• Manufactures are to include activities when grammatical variations or change in non-living physical object or article or thing “any” like:

(i) Resulting in transformation of object or article or thing into new + distinct object or article or thing “any” with different name + character + also uses “all”

(ii) Bringing in existence into new + distinct object or article with different chemical composition or integral structure “any” with different name + character + uses “all”

192. What are Non-Debt Instruments (NDIs)?

• NDIs are to include certain instruments like:

(i) 100% investments in NDIs of companies incorporated as public + private + listed + also unlisted “all”

(ii) 100% investments in capital contribution of LLPs

(iii) 100% investments in instruments as recognised in FDI policy notified by govt.

(iv) 100% investments in certain units like:

(a) Units of Alternative Investment Funds (AIFs)

(b) Units of Real Estate Investment Trust (REITs)

(c) Units of Infrastructure Investment Trusts (InvIts)

(v) 100% investments in certain units when funds are invested more than 50% in equities like:

(a) Units of mutual funds

(b) Units of Exchange-Traded Fund (ETFs)

(vi) 100% investments in junior-most layer like equity tranche of securitisation structure

(vii) 100% investments in acquisitions or sale or dealing “any” directly in immovable properties

(viii) 100% investments in trusts’ contributions

(ix) 100% investments in DRs issued against NDIs

193. What are Non-Resident Indians (NRIs)?

• NRIs are to include Non-RoI + also citizen of India “both together”

194. What is Overseas Citizen of India (OCI)?

• OCI are to include Non-RoI + non-citizen of India + also registered as Overseas Citizen of India (OCI) cardholder under section 7A of Citizenship Act, 1955 (57 of 1955) “all together”

195. What are Resident Indian Citizens (RICs)?

• RICs are to include individuals those are RoI + also citizen of India “both together” in accordance with Constitution of India or Citizenship Act, 1955 “any”

196. What are Sectoral Caps (SCs)?

• Sectoral caps are to include maximum permissible FIs’ limit prescribed by RBI for direct + also indirect “both together” in Indian companies’ NDIs or in Indian LLPs’ capital contribution “any”

197. What are FCCBs + DRs’ Sectoral Caps (SCs)?

• FCCBs + also DRs “both” are not included for FIs’ sectoral caps when these are having underlying of instruments as nature of debt

198. What are Equity in debt’s conversion’ Sectoral Caps (SCs)?

• NDIs are included for FIs’ sectoral caps when Non-RoI have acquired against debt instrument’s conversion

199. What are Share Based Employee Benefits (SBEBs)?

• SBEBs are to include issue of NDIs to Non-RoI employees + directors + employees + directors of holding company + Joint Venture (JV) + Wholly Owned Subsidiary (WOS) + also Subsidiaries “all” in accordance with SBEBs schemes formulated by Indian companies.

200. What are Startup Companies?

• Startup companies are to include private limited companies as incorporated in accordance with CA, 2013 + also identified under G.S.R. 180(E) dated February 17^th, 2016 issued by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry “both”

201. What are Subsidiaries?

• Subsidiaries are to include as defined in CA, 2013 + also amended from time to time “both”.

202. What are Sweat Equity Shares (SESs)?

• SESs are to include as defined in CA, 2013 + also amended from time to time “both”.

203. What are Transferable Development Rights (TDRs)?

• TDRs are to include as defined in Section 6(2) of CA, 2013 + also amended from time to time “both”.

204. What are Units?

• Units are to include beneficial interest in investment vehicles

205. What are Venture Capital Funds (VCFs)?

(i) VCFs are to include funds established as trust + company + also body corporate registered in accordance with Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 “all”

(ii) When words + expressions are not defined in NDI Rules, 2019 shall have same meaning as defined in FEMA, 1999 + rules + also regulations “all”

206. What are NDI Rules, 2019’s administration by RBI?

(i) RBI is permitted for administrating NDI Rules, 2019

(ii) RBI is also permitted for interpretating + also issuing communications “both” for effective implementation of NDI Rules 2019’s provisions like:

(a) Permitted for issuing directions

(b) Permitted for issuing circulars

(c) Permitted for issuing instructions

(d) Permitted for issuing clarifications

(B) NDIs Rules’ General requirements

207. What are restrictions for Non-RoI?

(i) FIs by Non-RoI are permitted in accordance with FEMA, 1999 + rules + also regulations “all”

(ii) (a) RBI is permitted to allow FIs by Non-RoI which are not permitted in accordance with FEMA, 1999 + rules + also regulations “all”

(b) RBI is permitted to allow based on applications filed for FIs by Non-RoI

(c) RBI is permitted to impose conditions as considered necessary if any.

(iii) FIs by Non-RoI are permitted by Indian companies + Indian LLPs + Indian investment vehicles + Venture Capital Funds (VCFs) + Indian partnership firms + Association of Persons (AoPs) + also Proprietary concerns in accordance with FEMA, 1999 + rules + regulations “all”

208. What are requirements for Non-RoI?

• FIs are required to obey RBI’s guidelines like:

(i) Guidelines for entry routese. Automatic route & Govt.’s approval route

(ii) Guidelines for sectoral caps

(iii) Guidelines for statutory caps

(iv) Guidelines for investments’ limits

(v) Guidelines for pricings

(vi) Guidelines for other mandatory conditions

(C) NDIs Rules for Non-RoI

209. What are Rules for Non-RoI?

• Non-RoI are permitted for FIs through certain modes like:

(i) Non-RoI are permitted for subscribing NDIs of Indian companies in accordance terms and conditions specified in Schedule I of NDI Rules, 2019.

(ii) Non-RoI are permitted for purchasing NDIs

(iii) Non-RoI are permitted for selling NDIs

(iv) Non-RoI are required to obtain ’s approval for subscribing + purchasing + also selling “all” when BOs or citizens or residents are located in India’s 9 land borders countries like:

(a) Afghanistan

(b) Bangladesh

(c) Bhutan

(d) China

(e) Maldives

(f) Myanmar (Burma)

(g) Nepal

(h) Pakistan

(i) Sri Lanka

(v) These BOs or citizens or residents are located in India’s 9 land borders countries are not permitted under govt.’s “approval” route for FIs in certain sectors like:

(a) Defence sector

(b) Space sector

(c) Atomic energy sector

(d) Other sectors

(vi) Non-RoI are required to obtain ’s approval for FIs when existing or future ownership or BO are exceeding sectoral caps / limits through direct or indirect transfers

(vii) These provisions for India’s 9 land border countries are not applicable for multilateral banks / multilateral funds when India is member country of such banks / funds

(viii) Issues / transfers are treated FIs for participating interest or rights in oil fields by Indian companies to Non-RoI subject to satisfying certain terms and conditions specified in schedule I of NDI Rules, 2019

(ix) (a) Non-RoI are permitted for FIs through LLPs’ capital contribution + also acquisition / transfer of share in profit “both” subject to satisfying certain terms and conditions specified in schedule I of NDI Rules, 2019

(b) Non-RoI from Pakistan + Bangladesh “both” are “also” not permitted for these FIs under “approval” route

(x) (a) Non-RoI are permitted for FIs through units of investment vehicles subject to satisfying certain terms and conditions specified in schedule I of NDI Rules, 2019

(b) Non-RoI from Pakistan + Bangladesh “both” are “also” not permitted for these FIs under “approval” route

(xi) Non-RoI are permitted for FIs through DRs issued by foreign depositories against underlying NDIs subject to satisfying certain terms and conditions specified in schedule IX of NDI Rules, 2019

210. What are Right / bonus for Non-RoI?

• Non-RoI are permitted to obtain right / bonus shares subject to satisfying certain conditions like:

(i) When offers are in accordance with provisions of CA, 2013

(ii) When offers are not exceeding sectoral cap / limit

(iii) When existing shareholdings are in accordance with RBI’s guidelines

(iv) When price is determined in accordance with RBI’s pricing guidelines for listed companies

(v) When price is determined not lower than price offered to RoI for unlisted companies

(vi) When FIs are satisfying certain conditions as applicable at time of issues.

(vii) When payments are satisfying RBI’s guidelines

(viii) When Non-RoI are permitted beside original NDIs were issued when they were RoI on “non-repatriation” basis.

(ix) These provisions are not applicable for share warrants’ issue

211. What are Rights’ renunciation by Non-RoI?

• Non-RoI are permitted to renounce in accordance with RBI’s pricing guidelines for right issues

212. What are Employe Stock Options (ESOPs) for Non-RoI?

• Non-RoI are permitted to acquire NDIs through certain modes like:

(i) ESOPs to employees + directors + also employees / directors of its holding company + its Joint Ventures (JVs) or its Wholly Owned Overseas Subsidiary (WOOS) or Subsidiaries “any”

(ii) Sweat Equity Shares (SESs) to these employees / directors

(iii) Share Based Employee Benefits (SBEBs) to these employees / directors

213. What are ESOPs’ requirements by Non-RoI?

(i) (a) ESOPs + SESs + also SBEBs “all” are required to issue through scheme drawn by Indian companies in accordance with SEBI’s regulations for FIs

Or

(b) Issued in accordance with Companies (Share Capital and Debentures) Rules, 2014 for FIs

Or

(c) Issued in accordance with other applicable laws for FIs

(ii) ESOPs + SESs + also SBEBs “all” are required to issue in accordance with sectoral cap / limit for FIs

(iii) ESOPs + SESs + also SBEBs “all” are required to issue in accordance with govt.’s approval when “approval” route for FIs

(iv) ESOPs + SESs + also SBEBs “all” are required to issue in accordance with govt.’s approval when these are being issued to Non-RoI from Pakistan or Bangladesh

(v) Non-RoI are permitted to apply for ESOPs + SESs + also SBEBs “all” beside original NDIs were issued when they were RoI on “non-repatriation” basis

214. What are Transfers from Non-RoI to Non-RoI?

• 1^st Non-RoI are permitted to transfer NDIs to 2^nd Non-RoI like equity shares + also units “both” in accordance with terms and conditions specified in schedules of NDI Rules, 2019 like:

(i) 1^st Non-RoI are permitted to transfer NDIs like equity shares + also units to 2^nd Non-RoI through sale or gift

(ii) Non-RoI are permitted to transfer these NDIs under liquidation + merger + de-merger + also amalgamation of entities / companies incorporated / registered outside India

(iii) Non-RoI are required to obtain approval for transferring NDIs when Indian companies are engaged in sector where “approval” route is permitted

(iv) 1^st Non-RoI are required to obey RBI’s guidelines for transferring NDIs to 2^nd Non-RoI when these were originally hold on “non-repatriation” basis where 2^nd Non-RoI are intended to hold on “repatriation” basis like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(v) Guidelines for other mandatory conditions

(vi) 1^st Non-RoI are permitted to sale NDIs directly or to gift or to sale at stock exchange + also units “both” to 2^nd Non-RoI in accordance with SEBI’s guidelines.

215. What are Transfers from RoI to Non-RoI?

• RoI are permitted to transfer NDIs to Non-RoI like equity shares + also units “both” through gift under RBI’s approval in accordance with terms and conditions specified in schedules of NDI Rules, 2019 like:

(i) That donees are eligible to hold NDIs in accordance with schedules of NDI Rules, 2019

(ii) (a) That gifts are not exceeding 5% of paid-up share capital of Indian companies

Or

(b) Not exceeding 5% of each series of debentures

Or

(c) Not exceeding 5% of each mutual fund scheme

(iii) 5% is to be computed on cumulative basis from 1^st single person to 2^nd single person

(iv) That sectoral caps / limits are not breached

(v) That donors + also donees “both” are relatives as defined in section 2(77) of CA, 2013

(vi) That values of securities to be transferred by donors are not to exceed equivalent to USD 50 thousands

(vii) That other conditions are satisfied as considered necessary in public interest by Central govt

216. What are Transfers with optional clause from Non-RoI?

(i) Non-RoI are permitted to transfer NDIs having optional clause like option or right to exist without any assured return

(ii) Non-RoI are required to satisfy pricing guidelines prescribed in NDI Rules, 2019 + also minimum locking period for 1 year or minimum locking period prescribed in NDI Rules, 2019 whichever is higher

217. What are Transfers on deferred payments from Non-RoI?

(i) Non-RoI are permitted to purchase NDIs on deferred payments basis

(ii) Deferred payments are not permitted to exceed 25% of total consideration

(iii) Deferred payments are not permitted to exceed 18 months from date of transfer agreement.

(iv) Deferred payments are not permitted to settle through escrow arrangement exceeding 18 months from date of transfer agreement.

(v) These total payments are required in accordance with RBI’s pricing guidelines.

218. What are Transfers through escrow account from Non-RoI?

(i) Non-RoI are permitted to open escrow account in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

(ii) Non-RoI are required to fund escrow account through direct remittance from outside India in official banking channel

Or

(iii) Non-RoI are required to fund escrow account through guarantee issued by AD Category-I Banks subject to terms and conditions specified in Foreign Exchange Management (Guarantees) Regulations, 2000

219. What are Transfers through pledge from RoI?

• RoI are permitted to transfer NDIs + also units of investment vehicles “both” through pledge for raising External Commercial Borrowings (ECBs) in accordance with Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 subject to satisfying certain terms and conditions like:

(i) That pledge’s periods are to be matched with maturity’s period

(ii) That transfers are to be made in accordance with RBI’s rules + also directions “both” when innovation of pledge is exercised.

(iii) That Statutory Auditors have certified for permitted end-uses of ECB’s funds.

(iv) That No Objection Certificates (NOCs) are obtained from AD Category-I Banks before pledge.

(v) That transfer of NDIs are to be made in accordance with RBI’s guidelines like:

(a) Guidelines for entry routese. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other “mandatory” conditions

220. What are Transfers through pledge from Non-RoI?

• Non-RoI are permitted to transfer NDIs + also units of investment vehicles “both” through pledge for raising External Commercial Borrowings (ECBs) subject to satisfying certain terms and conditions like:

(i) That pledge be in favour of banks in India for securing credit facilities against bona fide purposes

(ii) That pledge be in favour of banks outside India for securing credit facilities against bona fide purposes

(iii) That pledge be in favour of RBI’s registered Non-Banking Financial Companies (NBFCs) in India for securing credit facilities against bona fide purposes

(iv) That RBI’s compliances are satisfied

(v) That transfer of NDIs are to be made in accordance with RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other “mandatory” conditions

(D) NDIs Rules for Foreign Portfolio Investors (FPIs)

221. What are Investments by FPIs?

(i) FPIs are permitted to purchases / to sales NDIs of listed + also to be listed “both” companies

(ii) FPIs are permitted to purchases / to sales debt instruments of listed + also to be listed “both” companies in accordance with terms and conditions specified in schedule-II

(iii) FPIs are permitted to invest in SEBI’s approved 100% exchange traded derivative contracts subject to satisfying limits specified by SEBI + also issued in accordance with terms and conditions specified in schedule-II “both”

(iv) FPIs are permitted to invest in Indian Depository Receipts (IDRs) of non-residents companies + also issued in Indian Capital Market “both” subject to terms and conditions specified in schedule-X of NDI Rules, 2019

222. What are Transfers by FPIs?

(i) FPIs are permitted to transfer NDIs + units subject to terms and conditions in schedules annexed to NDI Rules, 2019 + also specified by SEBI “both”.

(ii) FPIs are required to obtain approval for transfer NDIs + also units “both” when Indian companies are engaged in sector where govt. approvals are required.

(iii) FPIs are required to comply provisions applicable for aggregate FPIs limits + also sectoral limits “both” specified in item (iii) of sub-paragraph (a) of paragraph (1) of Schedule II of NDI Rules, 2019

(E) NDIs Rules for NRIs + OCIs

223. What are Investments by NRIs + OCIs?

(i) NRIs + OCIs are permitted to purchase / to sale NDIs + also DIs of listed Indian companies “all” subject to terms and conditions prescribed in schedule -III of NDI Rules, 2019 on “repatriation”

(ii) (a) NRIs + OCIs are permitted to purchase / to sale NDIs + also DIs of non-listed Indian companies “all” subject to terms and conditions prescribed in schedule -IV of NDI Rules, 2019 on “non-repatriation”

(b) NRIs + OCIs are permitted to contribute capital of Indian LLPs + partnership firms + proprietor concerns “all” subject to terms and conditions prescribed in schedule -IV of NDI Rules, 2019 on “non-repatriation” basis.

(iii) (a) NRIs + OCIs are permitted to trade + also to invest “both” in 100% SEBI’s approved Exchange Traded Derivative Contracts (ETDCs)

(b) These investments are permitted within limits specified by SEBI + also conditions prescribed in schedule-III of NDI Rules, 2019 “both”

(iv) NRIs + OCIs are permitted to purchase + to hold + to sale IDRs of Non-RoI companies + also issued in Indian capital market “all” subject to terms and conditions specified in schedule-X of NDI Rules, 2019

224. What are Sales / Transfers by NRIs + OCIs?

(i) NRIs + OCIs are permitted to sales / transfers NDIs + also units “all” subject to terms and conditions prescribed in schedules of NDI Rules, 2019 like:

(ii) NRIs + OCIs are permitted to sales / transfers NDIs + also units “all” through sale / gift to Non-RoI which were hold on “repatriation”

(iii) NRIs + also OCIs “both” are required to obtain ’s approval for transfer when Indian companies are engaged in sectors where govt.’s approval are required

(iv) NRIs + OCIs are required to sale to RoI when recent purchases / acquisitions are exceeding applicable aggregate limits or sectoral limits for NRIs + also OCIs “all” within RBI’s stipulated time.

(b) (a) NRIs + OCIs are permitted to sales / transfers NDIs + also units “all” to Non-RoI when they are holding on “non-repatriation” basis.

(b) NRIs + also OCIs “both” are required to obey RBI’s guidelines like:

• Guidelines for entry routes e. Automatic route & Govt.’s approval route
• Guidelines for sectoral caps
• Guidelines for statutory caps
• Guidelines for investments’ limits
• Guidelines for pricings
• Guidelines for other “mandatory” conditions

(c) These guidelines are not applicable when sale / transfer is from NRIs / OCIs to NRIs / OCIs

225. What are Transfers through gifts from NRIs + OCIs to Non-RoI?

• NRIs + OCIs are permitted to gift NDIs + also units “all” to Non-RoI when they were holding on “non-repatriation” basis after obtaining RBI’s approval subject to satisfying RBI’s terms and conditions like:

(i) That donees are eligible to hold securities under relevant schedules of NDI Rules, 2019

(ii) (a) That gifts are not exceeding 5% of paid-up capital of Indian companies or each mutual fund scheme “any”

(b) These 5% shall be on cumulative basis by 1^st person to 2^nd person

(iii) That gifts are not exceeding sectoral caps / limits for Indian companies

(v) That donor + also donees “both” are relatives defined in section 2(77) of CA, 2013

(v) That aggregate value for securities “to be” transferred + also “already” transferred “both” by donors to Non-RoI are not exceeding USD 50 thousand in 1 financial year

(vi) That other conditions are satisfied if any is considered necessary in public interest by Central govt.

226. What are Transfers through gifts from NRIs + OCIs to NRIs + OCIs?

• 1^st NRIs + OCIs are permitted to gift NDIs + also units “all” when they are holding on “non-repatriation” basis to 2^nd NRIs + OCIs when they are eligible investors under schedule IV of NDI Rules, 2019 + also required to hold on “non-repatriation” basis “both”

227. What are Transfer by OCBs?

(i) Overseas Corporate Bodies (OCBs) are permitted to transfer NDIs subject to satisfying certain directions issued by RBI from time to time.

(ii) Now OCBs entities are de-recognized through Foreign Exchange Management [Withdrawal of General Permission to Overseas Corporate Bodies (OCBs)] Regulations, 2003

(F) NDIs Rules for other Non-Resident Investors

228. What are other Non-Resident Investors?

• Other Non-resident investors are permitted to invest in securities subject to satisfying certain terms and conditions specified in schedule V of NDI Rules, 2019.

229. What are Transfers from other Non-Resident Investors?

• Other non-resident investors are permitted to transfer securities subject to satisfying certain terms and conditions specified in schedule V of NDI Rules, 2019 + specified by SEBI + also by RBI “all”

(G) NDIs Rules for Foreign Ventures Capital Investors (FVCIs)

230. What are FIs by FVCIs?

• FVCIs are permitted to invest in securities subject to satisfying certain terms and conditions specified in schedule VII of NDI Rules, 2019

231. What are Transfer from FVCIs?

• FVCIs are permitted to transfer securities subject to satisfying certain terms and conditions specified in schedule VII of NDI Rules, 2019 + specified by SEBI + also by RBI “all”

(H) NDIs Rules for Miscellaneous Matters

232. What are Convertible notes for automatic route?

(i) Non-RoI are permitted to purchase convertible notes issued by Indian Startup companies for minimum INR 25 lacs in single tranche under “automatic”

(ii) Non-RoI from Pakistan + Bangladesh are not permitted to purchase these convertible notes under “automatic” + also “approval” route “all”

(iii) Non-RoI are required to make payment + to satisfy conditions for remittance of sale + also maturity “all” proceeds specified by RBI.

233. What are Convertible notes for approval route?

(i) Non-RoI are permitted to purchase convertible notes issued by Indian Startup companies for minimum INR 25 lacs in single tranche under approval route when Startups are engaged in sector when FIs are permitted under govt. “approval” route.

(ii) Non-RoI from Pakistan + Bangladesh are not permitted to purchase these convertible notes under “automatic” + also “approval” route “all”

(iii) Non-RoI are required to obey RBI’s guidelines like:

(a) Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b) Guidelines for sectoral caps

(c) Guidelines for statutory caps

(d) Guidelines for investments’ limits

(e) Guidelines for pricings

(f) Guidelines for other “mandatory” conditions

(iv) Non-RoI are required to make payment + to satisfy conditions for remittance of sale + also maturity “all” proceeds specified by RBI

234. What are Convertible notes’ purchases by NRIs + OCIs?

(i) NRIs + also OCIs “both” are permitted to purchase convertible notes on “non-repatriation” basis in accordance with Schedule IV of NDI Rules, 2019

(ii) NRIs + also OCIs “both” from Pakistan + Bangladesh are not permitted to purchase these convertible notes under “automatic” + also “approval” route “all”

(iii) NRIs + also OCIs “both” are required to make payment + to satisfy conditions for remittance of sale + also maturity “all” proceeds specified by RBI.

235. What are Mergers / de-merger / amalgamation?

(i) Indian companies are permitted to issue NDIs to existing Non-RoI for certain purposes like:

(a) Scheme of compromise duly approved by NCLT

(b) Scheme of arrangement duly approved by NCLT

(c) Merger of 2 or more than 2 Indian companies duly approved by NCLT

(d) Amalgamation of 2 or more than 2 Indian companies duly approved by NCLT

(e) Reconstruction through demerger duly approved by NCLT

(f) Reconstruction through other way “if any” duly approved by NCLT

(g) Transfer from 1 or more than 1 Indian companies to another company duly approved by NCLT

(h) Division in 1 or more than 1 Indian company duly approved by NCLT

236. What are requirements for Mergers / de-merger / amalgamation?

(i) That Indian companies are required to obey certain requirements for merger/de-merger/amalgamation like:

(a) Entry routes for FIs by Non-RoI

(b) Sectoral caps for FIs by Non-RoI

(c) Investment limits for FIs by Non-RoI

(d) Attendant conditionalities for FIs by Non-RoI

(ii) That Indian companies are required to obtain ’s approval when sectoral caps or attendant conditionalities are breached for FIs by Non-RoI

(iii) That transferor companies or transferee companies or new companies are required to obtain ’s approval when engaged in prohibited sectors / activities for FIs by Non-RoI

(iv) That transferor companies or transferee companies or new companies are not required to obtain ’ approval when FIs by Non-RoI are permitted under “automatic” route

(v) That transferor companies or transferee companies or new companies are required to obey SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015 when companies are listed on recognized stock exchange(s) in India.

237. What are requirements by Non-RoI?

• Pricing guidelines are not applicable for issue made in accordance with SEBI’s regulations when pricing guidelines are specified by SEBI + also Prices for sale to Non-RoI are not permitted lower than certain criteria “both” like:

(i) Prices for issue are not lower than “computed” in accordance with Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 for listed companies + also for companies in de-listing process “both”

(ii) Valuations for issue NDIs are to be “accepted” in accordance with internationally accepted pricing methodology for valuation based on Arm’s Length Principle (ALP) duly certified by Chartered Accountant (CA) or SEBI’s registered merchant banker or practicing Cost Accountant (CA) for Unlisted Indian companies

(iii) (a) Conversion prices for convertible NDIs are to be determined upfronte. at time of issue of instruments

(b) Conversion price for convertible NDIs are not to be lower than fair value computed at time of issue of instruments in accordance with respective rules

238. What are Pricing for transfer by companies?

(i) Prices for transfer are not permitted lower than “computed” in accordance with SEBI’s guidelines for listed companies

(ii) Prices for share’s preferential allotment are not permitted lower than “computed” in accordance with Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 for listed companies + also for companies those are in de-listing process “both”

(iii) Valuations for transfer NDIs are required to accept in accordance with internationally accepted pricing methodology for valuation based on Arm’s Length Principle (ALP) duly certified by Chartered Accountant (CA) or SEBI’s registered merchant banker or practicing Cost Accountant (CA) for Unlisted Indian companies

239. What are Pricing for transfer by Non-RoI?

(i) Prices for transfer are not permitted more than “computed” in accordance with SEBI’s guidelines for listed companies

(ii) Prices for share’s preferential allotment are not permitted more than “computed” in accordance with Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 for listed companies + also for companies those are in de-listing process “both”

(iii) Valuations for transfer NDIs are required to accept in accordance with internationally accepted pricing methodology for valuation based on Arm’s Length Principle (ALP) duly certified by Chartered Accountant (CA) or SEBI’s registered merchant banker or practicing Cost Accountant (CA) for Unlisted Indian companies

(iv) These pricing guidelines under para (i) to (iii) are not applicable when Non-RoI have received guaranteed exit price from Indian companies at time of making FIs

(v) (a) Swap for NDIs are not permitted more than “computed” by SEBI’s registered merchant banker in India

Or

(b) Computed by appropriate regulatory authorities’ registered investment banker outside India in host country.

240. What are Pricing for swap by Non-RoI?

(i) Prices for swap are not permitted lower than “computed” by SEBI’s registered merchant banker in India

Or

(ii) Computed by appropriate regulatory authority’s registered investment banker outside India in host country.

241. What are Pricing for subscription by Non-RoI?

• Prices for subscription to Memorandum of Association (MoA) under provisions of CA, 2013 are permitted at face value subject to satisfying entry route + also sectoral caps “both”

242. What are Pricing for share warrants by Non-RoI?

(i) Prices for share warrants +also conversion formulas “both” are required to determine upfront

(ii) Pricing guidelines for FIs in NDIs are not applicable for investments on “non-repatriation” basis

243. What are Taxes by Non-RoI?

(i) 100% payments are required to made through official banking channel available in India

(ii) Also payments are required to made after deducting amount for taxes + also other duties / levies “both” in India.

244. What are Remittances by Non-RoI?

(i) 100% remittances are required to made for NDIs’ sale proceeds to Non-RoI in accordance RBI’s rules + also conditions “both” prescribed in relevant schedule

(ii) AD category-I Banks are required to allow remittances after deducting taxes + also other duties / levies “both” in India where NDIs were held by Non-RoI on “repatriation” basis

(iii) RBI’s approvals are required when NDIs are not sold in accordance with pricing guidelines

245. What are Downstream investments by companies?

• 2^nd Indian companies are required to comply certain requirements for receiving investments through downstream investments which are commonly known as indirect FIs from 1^st Indian companies those have received direct FIs like:

(i) Requirement for entry route

(ii) Requirement for sectoral caps

(iii) Requirement for pricing guidelines

(iv) Requirement for other attendant conditions

246. What are Downstream investments by LLPs?

• 2^nd Indian companies are required to comply certain requirements for receiving investments through downstream investments which are commonly known as indirect FIs from 1^st Indian LLPs those have received direct FIs like:

(i) 2^nd Indian companies are required to operate in sectors / activities where 100% FIs are permitted under “automatic” route

(ii) 2^nd Indian companies not required to comply FDI Linked Performance Conditions (FLPCs)

247. What are Downstream investments for Corporate Debt Restructuring (CDR)?

(i) Downstream investments are not required to treat indirect FIs from July 31, 2012 when investments received for certain purposes like:

(a) When received for CDR

(b) When received for other loan restructuring mechanism

(c) When received for trading book

(d) When received for shares’ acquisition due to defaults in loans by banking companies defined in section 5(c) of Banking Regulation Act, 1949 + also companies incorporated in India “both”

(ii) Downstream investments are required to treat indirect FIs from July 31, 2012 when investments received for strategic downstream investment purpose

248. What are Total FIs by Non-RoI?

(i) 100% NDIs are to include for computing total FIs which were acquired + also hold “both” by Non-RoI after conversion of their debt instruments under arrangements / agreements

(ii) Foreign Currency Convertible Bonds (FCCBs) + also Depository Receipts (DRs) “both” are not to include for computing total FIs beside these are underlying with NDIs

(iii) Indian companies are required to compute total FIs at every stage of FIs + also in every company “both”

(iv) (a) Indian companies are required to include 1^st downstream investments “made” by them for computing total FIs

(b) Indian companies are not required to include 1^st downstream investments “received” by them for computing total FIs

(v) Indian companies are required to include 1^st downstream investments “received” by them equivalent to 2^nd downstream investments made by them for computing total FIs

249. What are requirements for downstream investments?

• Downstream investments are commonly known indirect FIs in Indian companies those have “received” subject to satisfying certain requirements like:

(i) Indian companies are required to obtain approval from Board of Directors (BoDs) + also to have shareholders’ agreements “both”

(ii) (a) Indian companies are required to receive requisites funds from outside India for downstream investments

(b) Indian companies are required not to use borrowed funds from domestic markets

(iii) Indian companies are permitted to use internal accruals e. profits already transferred to reserve account after making taxes’ payments

(iv) (a) Indian companies are not permitted to raise debts to make downstream investments

(b) Contraventions are required to treat violation of FEMA, 1999 + rules + regulations + directions + also etc. “all”

250. What are requirements for transferring companies?

• Non-RoI are permitted to transfer NDIs of 1^st Indian companies those are held by 2^nd FIs receiving Indian companies + also owned / controlled by Non-RoI “both”

(i) Non-RoI are permitted to transfer NDIs to Non-RoI subject to satisfying RBI’s specified reporting requirements

(ii) RoI are permitted to transfer NDIs to Non-RoI subject to satisfying pricing guidelines

(iii) Non-RoI are permitted to transfer NDIs to Indian companies those have received FIs + also owned / controlled by Non-RoI “both”

251. What are requirements for 1^st transferring companies?

• Indian companies those made 1^st level + 2^nd level + 3^rd level + also 3^rd level onwards downstream investments “all” are required to comply legal requirements like:

(i) That Indian companies are required to obtain certificate from its Statutory auditors on annual basis + also to mention in directors report “both”

(ii) That Statutory auditors are required to inform to RBI’s Regional office where registered office of companies are located + also to obtain acknowledgement from Registered Office (RO) of companies “both” when statutory auditors have issued qualified report

252. What are Clarifications for downstream investments?

(i) (a) Indian companies are not required any modification to conform to NDI Rules 2019 those have made downstream investments in accordance with guidelines were in existence “before” Feb 13, 2009

(b) Indian companies are required necessary modification to conform to NDI Rules 2019 those have made downstream investments in accordance with guidelines were in existence “after” Feb 13, 2009

(ii) Indian companies are required necessary modification to conform to NDI Rules 2019 those have made downstream investments not in accordance with guidelines were in existence between Feb 13, 2009 and June 21, 2013 + also to intimate to RBI up to 03, 2013 “both”

253. What is Ownership by Companies + LLPs?

(i) Ownership of Indian companies are to include NDI’s holdings exceeding 50% of paid-up capital of NDIs in Indian companies

(ii) Ownership of Indian LLPs are to include contribution exceeding 50% of capital + also having majority profit sharing “both”

254. What is Ownership by RICs?

(i) (a) Companies owned by RICs are to include Indian companies when ownership is vested with RICs

Or

(b) When ownership is vested with Indian companies those are ultimately owned + also controlled “both” by RICs

(ii) (a) LLPs owned by RICs are to include Indian LLPs when ownership is vested with RICs

Or

(b) When ownership is vested with Indian entities those are ultimately owned + also controlled “both” by RICs

255. What is Ownership by Non-RoI?

(i) Companies owned by Non-RoI are to include Indian companies those are owned by Non-RoI

(ii) LLPs owned by Non-RoI are to include Indian LLPs those are owned by Non-RoI

256. What is Control by Non-RoI?

• Controls are to include certain rights like:

(i) Rights to appoint majority of directors

(ii) Rights to control managements

(iii) Rights to take policy decisions with shareholders

(iv) Rights to take policy decisions without shareholders

(v) Rights to management with shareholders agreements

(vi) Rights to management with voting agreements

257. What are LLPs’ Controls by Non-RoI?

• Controls are to include certain rights like:

(i) Rights to appoint majority of Designated Partners (DPs)

(ii) Rights to take policy decisions

258. What is Control by RICs?

(i) (a) Companies controlled by RICs are to include Indian companies those control is vested with RICs

Or

(b) Control is vested with Indian companies those “ultimately” owned + also controlled “both” by RICs

(ii) (a) LLPs controlled by RICs are to include Indian LLPs those control is vested with RICs

Or

(b) Control is vested with Indian entities those “ultimately” owned + also controlled “both” by RICs

259. What is Control by Non-RoI?

(i) Companies controlled by Non-RoI are to include Indian companies those are controlled by Non-RoI

(ii) LLPs controlled by Non-RoI are to include Indian LLPs those are controlled by Non-RoI

260. What are Downstream investments by companies / LLPs?

(i) Downstream investments are to include investments made by 1^st Indian companies those are having FIs in 2^nd Indian companies

Or

(ii) Investments made by investments vehicles those are having FIs in Indian companies

Or

(iii) Investments made by investments vehicles those are having FIs in Indian LLPs.

261. What are Holding companies?

• Holding companies are to include companies as defined under CA, 2013

262. What are Indirect FIs by Non-RoI?

(i) (a) Indirect FIs are to include downstream investments received by 2^nd Indian companies from 1^st Indian companies those have FIs

(b) Indian companies not owned + also not controlled “both” by RICs

Or

(c) Owned + also controlled “both” by Non-RoI

Or

(d) Investment vehicles whose sponsor or manager or investment manager is not owned + also not controlled “both” by RICs

Or

(e) Owned + also controlled “both” by Non-RoI

(ii) Downstream investments made by Indian companies those are owned + also controlled “both” by NRIs on “non-repatriation” basis are not to treat indirect FIs

263. What are Total FIs by Non-RoI?

• Total FIs are to include total direct + also indirect “both” FIs “computed” on fully diluted basis.

264. What are Strategic Downstream Investments (SDIs) by Banking companies?

(i) Strategic downstream investments are to include investments “made” by banking companies those are “incorporated” in India

(ii) These Strategic downstream investments are to include investments “received” by banking companies’ subsidiaries + JVs + also associates “all”

(I) NDIs Rules for Acquisition + Transfer of Property (Chapter-IX)

(A) Acquisition + Transfer of property in India by NRI + OCI

265. What are Acquisitions by NRIs + OCIs?

(i) NRIs + also OCIs “both” are permitted to acquire “general” properties in India

(ii) NRIs + OCIs are not permitted to acquire “special” properties in Indiae. agricultural land + farm house + also plantation properties “all”

266. What are Payments by NRIs + OCIs?

(i) NRIs + also OCIs “both” are required to make payments in India through official banking channels by inward remittance from outside India

Or

(ii) NRIs + OCIs are required to make payments in India through debit in Non-Resident Ordinary (NRO) accounts maintained with AD Category-I Banks in India in accordance with provisions of FEMA, 1999 + FEMA’s rules + FEMA’s regulations + FEMA’s directions + also etc. “all”

(iii) NRIs + OCIs are not permitted to make payments in India through Traveller’s Cheque (TC) + Foreign Currency Notes (FCNs) + also other modes as may be prescribed by RBI “all”

267. What are Acquisitions through gifts by NRIs + OCIs?

(i) NRIs + OCIs are permitted to acquire “general” properties in India through gifts from RoI + NRIs + also OCIs “all” those are required to be close relatives as defined under section 2(77) of CA, 2013

(ii) NRIs + OCIs are not permitted to acquire “special” properties in India i.e. agricultural land + farm house + plantation properties through gifts from RoI + NRIs + also OCIs “all”

268. What are Acquisitions through inheritances by NRIs + OCIs?

• NRIs + also OCIs “both” are permitted to acquire immovable properties in India through inheritance from certain persons like:

(i) NRIs + also OCIs “both” are permitted to acquire immovable properties in India from Non-RoI those have acquired in accordance with provisions of foreign exchange law in force at time of acquisition by him or in accordance with provisions of NDI Rules, 2019

(ii) NRIs + also OCIs “both” are permitted to acquire immovable properties in India from RoI

269. What are Transfers to RoI?

• NRIs + also OCIs “both” are permitted to transfer immovable properties in India to RoI

270. What are Transfers to NRIs + OCIs?

• NRIs + OCIs are permitted to transfer immovable properties in India to NRIs + also to OCIs “both”

(B) Joint acquisitions by spouses of NRI + OCI

271. What are Joint acquisitions by spouse of NRIs + OCIs?

(i) Non-RoI spouses’ of NRIs + also OCIs “both” are permitted to acquire “general” immovable properties in India jointly with his / her spouse

(ii) Non-RoI spouses’ of NRIs + also OCIs “both” are not permitted to acquire “special” immovable properties in India jointly with his / her spouse like:

(a) Agricultural lands

(b) Farm houses

(c) Plantation properties

(iii) Non-RoI spouses’ of NRIs + also OCIs “both” are required to make payment through funds received in India via banking channels by way of inward remittance from any place outside India

Or

(iv) Non-RoI spouses’ of NRIs + OCIs are required to make payment through NRO accounts maintained in accordance with provisions of FEMA, 1999 + also RBI’s regulations “all”

(v) Non-RoI spouses’ of NRIs + OCIs are not permitted to make payment through TC + FCNs + also other modes as may be prescribed by RBI “all”.

(vi) Non-RoI spouses’ of NRIs + OCIs are required to have marriage registered + also subsisted (continued) for minimum 2 years immediately preceding to acquisition of 1 “general” immovable property “all”.

(vii) Non-RoI spouses’ of NRIs + OCIs are not required to prohibit by RBI + also govt. of India “all” from acquisition of 1 “general” immovable property.

(C) Acquisition of properties for carrying permissible activities

272. What is Acquisition for carrying permissible activities?

(i) Non-RoI are permitted to acquire “general” immovable properties for carrying permissible activities through certain modes of establishment in India in accordance with Foreign Exchange Management (Establishment in India of Branch office or liaison office or project office or any other place of business) Regulations, 2016 like:

(a) For necessary / incidental to carry permissible activities through Branch Office (BO) in India

(b) For necessary / incidental to carry permissible activities through Project Office (PO) in India

(c) For necessary / incidental to carry permissible activities through any Other Office (OO) in India

(ii) Non-RoI are not permitted to acquire “general” immovable properties for carrying permissible activities through Liaison Office (LO) in India

(iii) Non-RoI are required to comply requirements under 100% FEMA, 1999 + FEMA’s rules + also FEMA’s regulations for time being in force “all”

(iv) Non-RoI are required to file declarations in Form IPI to RBI within 90 days from date of acquisition

273. What is Mortgage for carrying permissible activities?

• Non-RoI are permitted to transfer “general” immovable properties through mortgage to AD Category-I Banks as security for borrowings

274. What is Acquisition by Non-RoI from specified countries?

(i) Non-RoI from 11 specified countries are not permitted to acquire “general” immovable properties in India for carrying permissible activities without RBI’s approval like:

(a) Afghanistan

(b) Bangladesh

(c) Bhutan

(d) China

(e) Democratic People’s Republic of Korea (DPRK)

(f) Hongkong

(g) Iran

(h) Nepal

(i) Maccau

(j) Pakistan

(k) Sri Lanka

(ii) Non-RoI from 11 specified countries are permitted to acquire “general” immovable properties in India on maximum 5 years on lease / rent for carrying permissible activities without RBI’s approval

(iii) Non-RoI from 11 specified countries are permitted to acquire “general” immovable properties in India for carrying permissible activities with RBI’s approval.

275. What is Purchase / Sales by Foreign Embassies?

• Foreign embassies + foreign diplomats + foreign consulate generals “all” are permitted to purchase / to sale “general” immovable properties in India

But

• These organizations are not permitted to purchase / to sale “special” immovable properties i.e. agricultural land + plantation properties + also farm house “all” in India subject to satisfying certain conditions

(i) These organizations are required to obtain clearance from Ministry of External Affairs (MoEAs) govt. of India.

(ii) These organizations are required to make payment against consideration for acquisition of “general” immovable properties in India from funds remitted through banking channel from outside India.

276. What is Acquisition by Long Term Visa (LTV) Holder?

• Non-RoI + also citizens of 3 countries i.e. Afghanistan + Bangladesh + Pakistan belonging to 6 minority communities in these countries i.e. Hindus + Sikhs + Buddhists + Jains + Parsis + Christians are permitted to acquire 1 residential property for self-occupation + also 1 commercial property for self-employment “all” subject to satisfying certain conditions

(i) That property is not permitted to locate in restricted areas + protected areas as notified by govt. of India + also cantonment areas “all”

(ii) That persons are required to declare to Revenue authority of district where property is located about source of funds + also to confirm residing in India on LTV “both”

(iii) That property’s registration documents are required to mention nationality + also brief facts on LTV “both”

(iv) That property is required to attach / to confiscate when these persons are indulgence in anti-India activities.

(v) That persons are required to submit copy of acquisition of properties’ documents to Deputy Commissioner of Police (DCP) or Foreigners Registration Office (FRO) or Foreigners Regional Registration Office (FRRO) + also MoHA (Foreigners division) “both”

(vi) (a) That persons are permitted to sale property “after” becoming citizen of India

(b) That persons are permitted to sale property “before” becoming citizen of India with approval from DCP / FRO / FRRO

277. What are Repatriations by Non-RoI?

(i) (a) Non-RoI as defined under section 6(5) of FEMA, 1999 + also his / her successor “both” are permitted to repatriate sale proceeds of immovable properties with RBI’s general permission / specific permission

(b) These are not permitted to repatriate sale proceeds of immovable properties without RBI’s general permission / specific permission

(ii) NRIs + also OCIs “both” are permitted to repatriate sales proceeds of “general” immovable propertiese. non-agricultural land / plantation properties / farm house in India subject to satisfying certain conditions like:

(a) That “general” immovable properties were acquired by seller in accordance with provisions of FEMA, 1999 + FEMA’s rules + FEMA’s regulations + FEMA’s directions + also NDI Rules 2019 “all” in force at time of acquisition

(b) That amounts for acquisition of “general” immovable properties were paid from foreign exchange received through banking channel or debited to NRO account or debited to NRE account “any”

(c) That repatriation is not permitted against sale proceeds for more than 2 residential properties

(iii) RoI are permitted to repatriate sales proceeds of “general” immovable properties for outstanding of ECB’s lenders when RoI have failed in repayment of External Commercial Borrowings (ECBs) availed by RoI under provisions of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 as amended from time to where “general” immovable properties were charged in favour of ECB’s lenders

278. What are Prohibitions for Non-RoI?

• Non-RoI are prohibited to transfer “general” immovable properties in accordance with FEMA, 1999 + FEMA’s rules + FEMA’s regulations + FEMA’s directions + also NDI Rules 2019 “all” like:

(i) RBI is permitted to transfer subject to satisfying certain conditions considered necessary when sufficient reasons are existed for sale

(ii) AD-Category I Banks are permitted to create charge on RoI’s “general” immovable properties located in India in favor of Non-RoI lenders for ECB’s security in accordance with provisions of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000

(iii) (a) AD-Category I Banks are permitted to create charge on NRIs’ + also OCIs “both” “general” immovable properties located in India in favor of Non-RoI lenders for loans’ security in accordance with provisions of Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000

(b) These NRIs + also OCIs “both” are directors of foreign companies located outside India when companies have taken loan subject to satisfying certain conditions like:

• NRIs + also OCIs “both” are required to use borrowed funds outside India for core business activities “only”
• AD category-I Banks in India are permitted to sale “general” immovable properties when NRIs + also OCIs “both” are failed to make outstanding payments to their lenders outside India

(iv) (a) Non-RoI are permitted to sale “general” immovable properties located in India to RoI when properties were acquired in accordance with provisions of FEMA, 1999 + FEMA’s rules + FEMA’s regulations + FEMA’s directions + also NDI Rules 2019 “all”

(b) RoI are required to make payment through banking channel in India for acquiring “general” immovable properties from Non-RoI

279. What are Prohibitions for citizens of 11 countries?

(i) Non-RoI from 11 specified countries are required to obtain RBI’s approval for acquiring + also transferring “both” “general” immovable properties in India like:

(a) Afghanistan

(b) Bangladesh

(c) Bhutan

(d) China

(e) Democratic People’s Republic of Korea (DPRK)

(f) Hongkong

(g) Iran

(h) Nepal

(i) Maccau

(j) Pakistan

(k) Sri Lanka

(ii) Non-RoI from 11 specified countries are not required to obtain RBI’s approval for acquiring “general” immovable properties on lease / rent for period not exceeding 5 years

♦Schedule-I of NDI Rules, 2019♦

♦Purchase / sale of Non-Debt Instruments (NDIs) by Non-RoI for Indian companies¿

280. What are Purchases / sales by Non-RoI?

(i) Indian companies are permitted to issue NDIs to Non-RoI under “automatic” route or “approval” route for FIs subject to satisfying certain conditions like:

(a) Entry routes e. automatic route or approval route “any”

(b) Attendant conditionalities prescribed in Schedule-I of NDI Rules, 2019

(ii) Non-RoI are permitted to purchase NDIs of listed Indian companies on recognized stock exchange(s) in India subject to satisfying certain conditions like:

(a) That Non-RoI has already control of Indian companies under SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 + also continues to hold “both”

(b) That right to receive dividend is established + also dividend amount is credited to specially designated non-interest-bearing rupee account for acquisition of NDIs on recognised stock exchange(s) + also consideration for acquisition of NDI is to be paid out of this designated non-interest-bearing rupee account “both”

(iii) Non-RoI are permitted to acquire NDIs for setting wholly (100%) or subsidiary against pre-incorporation expenses + also pre-operative expenses “both” when 100% FIs are permitted in Indian companies subject to satisfying certain conditions like:

(b) That expenses are not exceeding 5% of authorized capital or USD 5 lac whichever is lower

(b) That Indian companies are required to report to AD category-I Banks for issue of NDIs to Non-RoI within minimum 30 days and maximum 1 year from date of issue of NDIs whichever is earlier

(iv) Indian companies are permitted to issue NDIs to Non-RoI when companies are engaged in activities where 100% FIs are permitted under “automatic” route + subject to satisfying conditions prescribed by govt. of India + also by RBI “all”

(a) For swap of NDIs

(b) For import of goods + machineries + also equipment “all”

But

Not permitted for import of 2^nd hand machineries

(c) For payment of pre-operative expenses + pre-incorporation expenses + rents’ payments + also etc. payment “all”

• Indian companies are required to obtain govt.’s approval when companies are engaged in activities where “automatic” route is not permitted + also approvals’ applications are required to made in prescribed format to govt. of India

(v) Indian companies are permitted to issue NDIs to Non-RoI against outstanding payments for supply of goods + also services “both” subject to satisfying certain conditions like:

(a) Remittances are required to made in accordance with FEMA, 1999 + its rules + its regulations + also its directions “all”

(b) These remittances are permitted with permissions from govt. of India or RBI “any” when prescribed under FEMA, 1999 + its rules + its regulations + also its directions “all”

(vi) Indian companies are required to complete regulatory actions for delay + contraventions made under FEMA, 1999 + its rules + its regulations + also its directions “all”

(vii) Indian companies are required to obey RBI’s mode of payments + attendant conditions against remittance for sale + also remittance for maturity proceeds “all”

281. What are Prohibited sectors for Non-RoI?

(i) Lottery business e. govt. lotteries + private lotteries + online lotteries + also etc. “all”

(ii) Gambling + betting + casinos + also etc. “all”

(iii) Chit funds

(iv) Nidhi companies

(v) Trading in Transferable Development Rights (TDRs)

(vi) Real estate business + also construction of farm houses “both”

(vii) Real estate business is to include “trading” activities for land + also building “both”

(viii) Real estate business is not to include certain activities like:

(a) Development of townships

(b) Construction of residential premises

(c) Construction of commercial premises

(d) Construction of roads

(e) Construction of bridges

(f) Construction of hotels

(g) Construction of resorts

(h) Construction of hospitals

(i) Construction of educational institutions

(j) Construction of recreational facilities

(k) Construction of city and regional level infrastructure

(l) Real Estate Investment Trusts (REITs) registered + also regulated “both” under SEBI (REITs) Regulations, 2014

(m) Earning of rents + also incomes on lease of properties “both”

(ix) Manufacturing of certain products like:

(a) Manufacturing of cigars

(b) Manufacturing of cheroots

(c) Manufacturing of cigarillos

(d) Manufacturing of cigarettes of tobacco + also tobacco substitutes “both”.

(x) Activities not opened for private sectors investments like:

(a) Atomic energy

(b) Railway operations “except” permitted activities under paragraph (3) of Schedule-I of NDIs Rules, 2019.

(xi) Foreign technology collaborations + also licensing “both” for certain activities like:

(a) Technology collaborations for franchise

(b) Technology collaborations for Trademark

(c) Technology collaborations for Brand name

(d) Technology collaborations for Management contract

282. What are Entry routes for Non-RoI?

(i) “Automatic” route

• Automatic route is to include route when 100% FIs by Non-RoI are permitted without approval from govt. of India or from RBI “any”

(ii) “Approval” route

(a) Approval route is to include route when FIs by Non-RoI are permitted with approval from govt. of India or from RBI “any” + also in accordance with conditions stipulated in approval “both”

(b) “Approval” route is not required when aggregate Foreign Portfolio Investments (FPIs) not exceeding 49% of paid-up-capital on fully diluted basis or sectoral cap or statutory cap whichever is lower where FIs are not transferring control of Resident Indian Companies (RICs) from Resident Indian Citizens (RICs) to Non-RoI

283. What are Sectoral Caps for Non-RoI?

(i) Sectoral caps are to include limit for sector / activities specified in table of schedule-I of NDI Rules, 2019 where maximum permitted FIs through sectoral / statutory caps are mentioned under “automatic” route

(ii) 20% + 49% + 74% + also 100% “all” FIs through sectoral / statutory caps under “automatic” route are required to satisfy certain restrictions like:

(a) Applicable laws

(b) Applicable regulations

(c) Applicable securities

(d) Applicable other conditionalities

(iii) 100% FIs are permitted under “automatic” route when not listed in specified sectors / activities + also not listed in prohibited items “both” subject to satisfying certain restrictions like:

(a) Applicable laws

(b) Applicable regulations

(c) Applicable securities

(d) Applicable other conditionalities

• Indian companies are required to obtain approval from govt. of India for FIs in financial services other than those indicated under serial no. F of schedule-I of NDI Rules, 2019

(i) Minimum Capitalization Requirements (MCRs) are not to include amount paid by Non-RoI beyond NDIs’ issue price e. price paid over and above face value + also premium “both”

(ii) (a) Indian companies are required to obtain approval from govt. for FIs when these are not RBI’s registered Non-Banking Financial Companies (NBFCs)

(b) Also not treated Core Investment Companies (CICs) where not required to register with RBI

(iii) Indian companies are not required to obtain approval from govt. for 100% FIs under “automatic” route when these are RBI’s registered Non-Banking Financial Companies (NBFCs)

(iv) (a) Indian companies are permitted to receive 100% FIs under “automatic” route when these are not engaged in activities where approval from govt. is required

(b) Also not made downstream investments which are commonly known Indirect FIs in subsidiary companies

(c) Also not required to obey FDI Linked Performance Conditions (FLPCs)

(d) Also not engaged in business operations

(v) Indian companies are required to comply certain compliances like:

(a) Sectoral / statutory caps

(b) Attendant conditions e. FDI Linked Performance Conditions (FLPCs)

(vi) (a) Indian companies are required to appoint Joint auditors for conducting statutory audit when FIs are specifying particular auditor or audit firm having international network for audit

(b) These Joint auditors are not permitted from same network

•Permitted sectors + entry routes + sectoral caps for Non-RoI (Schedule I)•

(A) Agriculture + Animal Husbandry activities (Table Part-I)

284. What are 100% FIs for Agriculture activities?

• 100% FIs are permitted under “automatic” route for certain agriculture activities like:

(i) Floriculture + Horticulture + Cultivation of vegetables + also mushrooms under controlled conditions “all”

(ii) Development + production of seeds + also planting materials “all”

(iii) Animal Husbandry + breeding of dogs + Pisciculture + Aquaculture + also Apiculture “all”

(iv) 100% services for agro + also allied sectors “both”.

285. What are Clarifications for FIs in Agriculture activities?

(i) FIs are not permitted for any sector / activity except mentioned under Para (i) to (iv)

(ii) Cultivation under controlled conditions are to include certain categories like:

(a) Floriculture

(b) Horticulture

(c) Cultivation of vegetables

(d) Cultivation of Mushrooms when rainfall + temperature + solar radiation + air humidity + also culture medium are controlled artificially “all”.

(e) Control of parameters may be effected through protected cultivation under greenhouses + net houses + poly houses + also other improved infrastructure facilities “all” when micro-climatic conditions are regulated anthropogenically.

(B) Plantation activities (Table Part-II)

286. What are 100% FIs for Plantation activities?

• 100% FIs are permitted under “automatic” route for certain plantations activities like:

(i) Tea plantations

(ii) Coffee plantations

(iii) Rubber plantations

(iv) Cardamom plantations

(v) Palm oil tree plantations

287. What are Clarifications for FIs in Plantation activities?

(i) FIs are not permitted for any sector / activity except mentioned under Para (i) to (vi)

(ii) State ’s approvals are needed for changing land use.

(C) Mining activities (Table Part-III)

288. What are 100% FIs for Mining activities?

• 100% FIs are permitted under “automatic” route for certain mining activities like:

(i) Mining + exploration of metal + non-metal ores + diamonds + golds + silvers + also precious ores “all” are permitted

(ii) Titanium bearing minerals + also its ores “both” are not permitted

(iii) These activities are permitted subject to satisfying certain provisions of Mines and Minerals (Development and Regulation) Act, 1957.

289. What are 100% FIs for Coal + Lignite activities?

• 100% FIs are permitted under “automatic” route for certain Coal + Lignite activities like:

(i) Coal + Lignite mining for captive consumption by power projects + iron and steel units + cement units + other eligible activities are permitted subject to satisfying certain provisions of Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) + also Coal Mines (Special Provisions) Act, 2015 (11 of 2015) “all”

(ii) Setting up coal processing plantse. washeries subject to satisfying certain conditions like:

(a) That companies are not permitted for coal mining + also not to sell washed coal + also sized coal from its coal processing plants in open market “all”

(b) That companies are not permitted for supplying washed + sized coal to parties those are supplying raw coal to coal processing plants for washing + also sizing “all”

(iii) Sale of coals + coal mining activities + associated processing infrastructure subject to satisfying certain provisions of Mines and Minerals (Development and Regulation) Act, 1957 +also Coal Mines (Special Provisions) Act, 2015 “all”

290. What are 100% FIs for Minerals’ separation activities?

• 100% FIs are permitted under “approval” route for certain mineral separation activities like:

(i) Mining + mineral separation of titanium bearing minerals + ores + its value addition + integrated activities are permitted subject to satisfying certain provisions of sectoral regulations + also Mines and Minerals (Development and Regulation) Act, 1957 “all”

(ii) These activities are permitted subject to satisfying certain conditions where Associated Processing Infrastructure (API) is to includes certain activities like:

(a) Coal washery

(b) Crushing

(c) Coal handling

(d) Separation between magnetic and non-magnetic

(iii) FIs for separating of titanium bearing minerals + also ores “both” are permitted subject to satisfying certain conditions like:

(a) That Value addition facilities are required to set up in India + also technologies to transfer to India “both”

(b) That disposals for tailings during mineral separation are to carry in accordance with regulations framed by Atomic Energy Regulatory Board like:

• Atomic Energy (Radiation Protection) Rules, 2004
• Atomic Energy (Safe Disposal of Radioactive Wastes) Rules, 1987

(iv) FIs are not permitted for mining of prescribed substances listed in Notification No. S.O. 61(E) dated Jan 18, 2006 issued by Department of Atomic Energy

291. What are Clarifications for FIs in Minerals’ separation activities?

(i) Titanium bearing ores to include certain minerals like:

(a) Ilmenite

(b) Leucoxene and Rutile

(c) Manufacture of titanium dioxide pigment

(d) Titanium sponge constitutes value addition

(ii) Ilmenites are required to process to produce Synthetic Rutile or Titanium Slag as intermediate value-added

(iii) Object of these conditions to ensure that:

(a) Raw material available in India is required to utilize for setting downstream industries.

(b) Technology available outside India is required to available for setting similar industries in India. Therefore once technology is transferred then objective of this Rules is deemed fulfilled

(D) Petroleum + Natural Gas activities (Table Part-IV)

292. What are 100% FIs for Petroleum + Natural Gas activities?

• FIs are permitted under “automatic” route for certain Petroleum products + also Natural gas “both” activities like:

(i) Exploration’s activities for Oil + also Natural gas “both” fields

(ii) Infrastructures for marketing of petroleum products + also natural gas “both”

(iii) Marketing for natural gas + petroleum products + petroleum product pipelines + natural gas pipelines + also LNG Regasification infrastructures “all”

(iv) Market study + formulation + also petroleum refining in private sector “all” subject to satisfying certain norms like:

(a) Sectoral policy for petroleum + also natural gas “both” activities

(b) Regulatory framework for oil marketing sectors

(c) Govt.’s policies for private participation in exploration of oil + also discovered fields of national oil companies “both”.

293. What are 49% FIs for Petroleum refining by PSUs?

• FIs are permitted under “automatic” route for certain petroleum refining by Public Sector Undertakings (PSUs) without disinvestment + also dilution of domestic equity in existing PSUs “both”.

294.What are 100% FIs for Petroleum refining by PSUs?

• FIs are permitted under “approval” route for certain petroleum refining by Public Sector Undertakings (PSUs) when in-principle approval is granted by govt. of India for strategic disinvestment of PSUs

(E) Manufacturing activities (Table Part-V)

295. What are 100% FIs for Manufacturing?

• FIs are permitted under “automatic” route for certain manufacturing activities like:

(i) Manufacturing activities by Indian companies themself

(ii) Manufacturing activities by Indian companies through legally tenable contract like Principal to Principal + also Principal to agent “both” basis

296. What are Clarifications for FIs in Manufacturing?

(i) Manufacturers are permitted to sell their products manufactured in India through wholesale + also retail + also e-commerce “all” “without” govt.’s approval.

(ii) 100% FIs are permitted under “approval” route for sale through trading + e-commerce for food products manufactured + also produced “all” in India

(iii) Applications for 100% FIs under “approval” route for “trading” in food products manufactured + also produced “all” in India are required to file in Department of Industrial Policy and Promotion

(F) Defense activities (Table Part-VI)

297. What are 74% FIs for Defense sector?

• 74% FIs are permitted under “automatic” route for defense industry after obtaining industry licenses under certain acts like:

(i) Industries (Development and Regulation) Act, 1951

(ii) Manufacturing of small arms and ammunition under Arms Act, 1959

298. What are 100% FIs for Defense sector?

• 100% FIs are permitted under “approval” route for accessing modern technology + also for other important reasons “both”

299. What are 49% to 100% FIs with requirements?

(i) 74% FIs are permitted under “automatic” route when new industrial licenses are obtained by companies under Industries (Development and Regulation) Act, 1951

(ii) 49% FIs are permitted under “automatic” route when new industrial licenses are not obtained by companies under Industries (Development and Regulation) Act, 1951

(iii) 49% FIs based companies are required to submit declaration with Ministry of Defense (MoD) for change within 30 days from change in equity pattern + shareholding pattern + also transfer from 1^st FIs to 2^nd FIs “all”

(iv) License’ applications are required to consider by Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry in consultation with MoD + also Ministry of External Affairs (MoEA) “both”.

(v) Security clearances are required for FIs from Ministry of Home Affairs (MoH) in accordance with MoD’s guidelines.

(vi) Indian companies are required to structures for becoming self-sufficient in area of product design and development + also to have maintenance and life cycle support facility for products

(vii) FIs in defense sector are required to face scrutiny for national security + also govt. is permitted to reserve right to review FIs which are affecting national security “both”

(G) Broadcasting activities (Table Part-VII)

300. What are 100% FIs for Broadcasting activities?

• FIs are permitted under “automatic” route for certain broadcasting carriage services like:

(i) Teleports services e. setting up-linking HUBs + also Teleports “both”

(ii) Direct to Home (DTH) services

(iii) Cable Networks services e. Multi System Operators (MSOs) operating at National + State + District level + undertaking up-gradation of networks towards digitalization + also addressability “all”

(iv) Mobile TV services

(v) Head-end-in-the Sky Broadcasting Service (HITS)

• 74% FIs are permitted under “approval” route for broadcasting carriage services when Indian companies are not obtaining licenses / permissions from sectoral ministry.

301. What are 100% FIs for Cable networks activities?

(i) FIs are permitted under “automatic” route for certain cable networks servicese. other MSOs which are not undertaking up-gradation of networks towards digitalization + addressability + also Local Cable Operators (LCOs) all.

(ii) 74% FIs are permitted under “approval” route for cable networks services when Indian companies are not obtaining licenses / permissions from sectoral ministry.

302. What are 49% FIs for Terrestrial Broadcasting activities?

• 49% FIs are permitted under “approval” route for terrestrial broadcasting FM (FM Radio) subject to satisfying certain conditions specified by Ministry of Information and Broadcasting for granting permission for setting FM Radio stations.

303. What are 49% FIs for News & Current Affairs activities?

• 49% FIs are permitted under “approval” route for Up-Linking of News & Current Affairs TV Channels

304. What are 26% FIs for News & Current Affairs activities?

• 26% FIs are permitted under “approval” route for Uploading/Streaming of News & Current Affairs by Digital Media

305. What are 100% FIs for Non-News & Current Affairs activities?

• 100% FIs are permitted under “automatic” route for Up-linking of Non-News & Current Affairs TV Channels/Downlinking of TV Channels

306. What are requirements for Broadcasting activities?

(i) Indian companies are required to satisfy relevant regulations + also conditions “both” specified by Ministry of Information and Broadcasting from time to time.

(ii) Indian companies are required to ensure that broadcasting service installation shall not become safety hazard + also not in contravention of any statute + rule + regulations + also public policy “all”

(iii) Indian companies are required to own + to control by Resident Indian citizens or by Indian companies own + also control “all” by Resident Indian citizens when maximum 49% FIs are permitted

(iv) Largest Indian shareholder is required to hold minimum 51% of total equity excluding equity held by public sector banks + also public financial institutions “both” defined in section 4A of CA, 1956 / section 2(72) of CA, 2013. These largest Indian shareholder’s holdings to include certain shareholdings like

(a) Relatives of largest Indian “individual” shareholder are defined in section 2(77) of CA, 2013

(b) Company + group of companies where individual himself or his HUF is holding management + also controlling interest “all”

(c) Group of Indian companies under same management + also ownership control “both” for largest Indian “company” shareholder

♦Indian Company♦

• Indian companies are to include companies where minimum 51% shareholding is held by RoI or by his relative defined in section 2(77) of CA, 2013 or by his HUF singly or in combination “any”

(H) Print Media activities (Table Part-VIII)

307. What are 26% FIs for Newspapers?

• 26% FIs are permitted under “approval” route for publishing of newspapers + also periodicals “both” dealing with news and current affairs

308. What are 26% FIs for Foreign magazines?

• 26% FIs are permitted under “approval” route for publishing Indian editions of foreign magazines dealing with news and current affairs

309. What are requirements for Print Media?

(i) Magazine is to include periodical publication on non-daily basis for public news + also comments on public news “both”

(ii) FIs are permitted for print media subject to satisfying certain guidelines issued by Ministry of Information and Broadcasting (MoIB) on Dec 04, 2008 for publishing Indian additions of foreign magazines dealing with news and current affairs

(iii) FIs are permitted for publishing + printing of Scientific + Technical Magazines + specialty journals + periodicals subject to satisfying compliances with legal framework as applicable + also guidelines issued by MoIB from time to time “all”.

310. What are 100% FIs for facsimile edition?

• 100% FIs are permitted under “approval” route for publication of facsimile edition of foreign newspapers subject to satisfying certain conditions like:

(i) FIs are permitted from owner of original foreign newspapers whose facsimile edition is proposed to be published in India.

(ii) FIs are permitted in entities incorporated or registered in India under provisions of CA, 2013 for publishing facsimile edition of foreign newspapers

(iii) FIs are permitted for publishing facsimile edition of foreign newspapers subject to satisfying certain guidelines issued by MoIB for publishing newspapers and periodicals dealing with news and current affairs + also publication of facsimile edition of foreign newspapers “both”

(I) Civil Aviation activities (Table Part-IX)

311. What are Civil Aviation’s FIs?

• Civil aviation sector is to include certain activities like:

(i) Airports

(ii) Scheduled + also Non-Scheduled “both” domestic passenger airlines

(iii) Helicopter services + also Seaplane services “both”

(iv) Ground Handling Services

(v) Maintenance + also Repair “both” organizations

(vi) Flying training institutes

(v) Technical training institutions

312. What are Airport’s FIs?

• Airport is to include landing area + taking off area for aircrafts’ runways + aircraft maintenance + passenger facilities + also aerodrome as defined under section 2(2) of Aircraft Act, 1934 “all”

313. What are Aerodrome’s FIs?

• Aerodrome is to include definite (fixed) ground + limited ground + water area for using wholly (100%) or partly (not 100%) for landing of aircraft + departing of aircraft + buildings + sheds + vessels + piers + also other structures “all”

314. What are Air transport’s FIs?

• Air transport service is to include service for transport by air of persons + mails + other thing as animate or inanimate for single flight + also series of flights “all”

315. What are Air transport undertaking’s FIs?

• Air transport undertaking is to include undertaking who has business for carriage by air of passengers + cargo for hire + also reward “all”

316. What are Aircraft component’ FIs?

• Aircraft component is to include parts + soundness + correct functioning for aircraft + essential to continued airworthiness + safety of aircraft + also equipment “all”.

317. What are Helicopter’s FIs?

• Helicopter is to include air aircraft supported in flight by reactions of air on minimum 1 power driven rotors on substantially vertical axis

318. What are Scheduled air transport’s FIs?

• Scheduled air transport service is to include air transport service undertaken for minimum 2 places + operated in accordance to published time table + also constituting recognizably systematic series “all”

319. What are Non-Scheduled air transport’s FIs?

• Non-Scheduled air transport service is to include non-scheduled air transport service + also Cargo airlines “both”

320. What are Cargo airlines’ FIs?

• Cargo airlines are to include airlines those are meeting conditions prescribed in civil aviation requirements issued by Ministry of Civil Aviation (MoCA)

321. What are Seaplane’s FIs?

• Seaplane is to include aero plane capable for taking off on water

322. What are Ground handling’s FIs?

• Ground handling is to include certain activities like

(i) Ramp handling

(ii) Traffic handling activities specified by MoCA through Aeronautical Information Circulars from time to time

(iii) Other activities specified by Central govt. for ramp handling + traffic handling “both”

323. What are 100% FIs for Other services?

• 100% FIs are permitted under “automatic” route

(i) For ground handling services subject to satisfying certain sectoral regulations + also security clearances “both”

(ii) For maintenances and repair organizations + flying training institutes + also technical training institutions “all”

♦Airport♦

324. What are 100% FIs for Greenfield Airport projects?

• 100% FIs are permitted under “automatic” route for Greenfield airport projects

325. What are 100% FIs for Brownfield Airport projects?

• 100% FIs are permitted under “automatic” route for existing airport projects

326. What are 100% FIs for Airport transport activities by NRIs?

• 100% FIs are permitted under “automatic” route for airport transport services like:

(i) Domestic + also International “both” scheduled Air transport services

(ii) Domestic Scheduled Passenger Airlines

(iii) Regional Air Transport Services

327. What are 49% FIs for Airport transport activities by Non-RoI?

• 49% FIs are permitted under “automatic” route for airport transport services like:

(i) Domestic + also International “both” scheduled Air transport services

(ii) Domestic Scheduled Passenger Airlines

(iii) Regional Air Transport Services

328. What are 100% FIs for Airport transport activities by Non-RoI?

• 100% FIs are permitted under “approval” route for airport transport services like:

(i) Domestic + also International “both” scheduled Air transport services

(ii) Domestic Scheduled Passenger Airlines

(iii) Regional Air Transport Services

329. What are 100% FIs for Non–scheduled air transport activities?

• 100% FIs are permitted under “automatic” route for Non-scheduled air transport services

330. What are 100% FIs for Helicopter + seaplane activities?

• 100% FIs are permitted under “automatic” route for Helicopter services + also seaplane services “both” after obtaining approval from Directo General of Civil Aviation (DGCA)

331. What are Aircrafts Rules, 1937?

• Body corporates are required to obtain Air operator certificates to operate certain Air transport services in accordance with schedule XI of Aircraft Rules, 1937 like:

(i) Domestic + also International “both” scheduled Air transport services

(ii) Domestic Scheduled Passenger Airlines

(iii) Regional Air Transport Services

332. What are Eligibility criteria’s for Air operator certificates?

(i) That body corporates are required to register + also has its principal place of business “both” in India

(ii) That Chairman + also minimum 667% Directors “both” are required to citizens of India.

(iii) That substantial ownership + also effective control “both” are required to vest with citizens of India.

333. What are 49% FIs for Air transport activities by foreign airlines?

(i) 49% FIs by foreign airlines are permitted under “approval” route in companies engaged in operations for Cargo airlines + helicopter services + seaplane services subject to satisfying certain limits + also entry routes “all”

(ii) 49% FIs by foreign airlines are permitted under “approval” route in companies engaged in operations for scheduled + also non-scheduled “both” air transport services subject to satisfying certain conditions like:

(a) That 49% FIs are to include FDIs + also FIIs / FPIs investments “both”

(b) That FIs are required to comply SEBI’s regulations like:

• Issue of Capital and Disclosure Requirements (ICDR) Regulations
• Substantial Acquisition of Shares and Takeovers (SAST) Regulations

(c) That 100% foreign citizens are required to associate with Indian scheduled + also non-scheduled “both” air transport services for security clearance

(d) That 100% technical equipment’s imports are required to obtain clearance from MoCA

(e) That FIs in Air India Limited are required subject to satisfying certain conditions like:

• That FIs in Air India Limited from Non-foreign airlines + foreign airlines (both together) are not permitted to exceed 49% directly + also indirectly “all”
• That FIs from NRIs in Air India Limited is permitted 100% directly + also indirectly “all”
• That substantial ownership + also effective control “both” for Air India Limited are required to continue with Indian Citizens stipulated in Aircraft Rules, 1937.

(f) That FIs in Civil aviation are required subject to satisfying provisions of Aircraft Rules, 1937 + also amended from time to time “both”.

(J) Construction + Development of Townships + Housing activities (Table Part-X)

334. What are 100% FIs for construction + development?

• 100% FIs are permitted under “automatic” route for construction-development projects like:

(i) Development of townships

(ii) Construction of residential premises

(iii) Construction of commercial premises

(iv) Construction of roads

(v) Construction of bridges

(vi) Construction of hotels

(vii) Construction of resorts

(viii) Construction of hospitals

(ix) Construction of educational institutions

(x) Construction of recreational facilities

(xi) Construction of city and regional level infrastructure

335. What are eligibility criteria for construction + development?

(i) That each phase of construction-development project is required to consider separate project.

(ii) That FIs are permitted to exit “after” completion of project or “after” development of trunk infrastructure like

(a) Construction-development of roads

(b) Construction-development of water supplies

(c) Construction-development of street lightings

(d) Construction-development of drainages

(e) Construction-development of sewerages

(iii) (a) Non-RoI are permitted to exit + also to repatriate against FIs “both” before completion of projects under “automatic” route when lock-in-period of 3 years of each trench of FIs is completed

(b) Transfer of stake from 1^st Non-RoI to 2^nd Non-RoI is permitted “without” re-patriation of FIs + lock-in-period + also govt.’s approval “all”

(iv) These projects are to satisfy norms + standards + land use requirements + provision of community amenities + common facilities prescribed in applicable building control regulations + bye-laws + rules + other regulations of State Govt. + Municipal body + also Local body “all”

(v) Indian companies are permitted to sell developed plots “only”. However developed plots to include infrastructure like:

(a) Infrastructure for roads

(b) Infrastructure for water supplies

(c) Infrastructure for street lightings

(d) Infrastructure for drainages

(e) Infrastructure for sewerages

(vi) Indian companies are required to obtain 100% approvals like:

(a) Building plans

(b) Layout plans for developing internal areas + peripheral areas + other infrastructure facilities “all”

(vii) Indian companies are required to make certain payments like:

(a) For internal development charges

(b) For external development charges

(c) For other charges

(viii) Indian companies are required to obey 100% requirements prescribed by rules + bye-Laws + regulations of State Govt. + Municipal body + also Local body “all”.

(ix) State Govt. + Municipal body + also Local body “all” are required to monitor compliances to obey by Indian companies (developers)

336. What are Clarifications for FIs in construction + development?

(i) FIs are not permitted in Indian companies those are already engaged or to be engaged in certain activities like:

(a) Real estate business

(b) Construction of farm houses

(c) Trading in Transferable Development Rights (TDRs)

(ii) FIs are permitted without lock-in-period 3 years for certain activities like:

(a) Hotels and Tourist Resorts

(b) Hospitals

(c) Special Economic Zones (SEZs)

(d) Educational Institutions

(e) Old Age Homes (OAH)

(iii) State Govt. + Municipal body + Local body are required to determine completion of projects in accordance with bye-laws + rules + also regulations “all”

(iv) 100% FIs are permitted under “automatic” route in completed projects for certain purposes like:

(a) Operating and managing townships

(b) Operating and managing malls

(c) Operating and managing shopping complexes

(d) Operating and managing business centers

(v) (a) Transfer 100% FIs are permitted for these purposes with lock-in-period of 3 years based on each trench of FIs

(b) Transfer of wholly (100%) + also partly (not 100%) of immovable properties are not permitted

(vi) Transfers to include certain activities like:

(a) Sale + exchange + also relinquishment of assets “all”

(b) Extinguishment of rights

(c) Compulsory acquisition under Statutory law

(vii) Transaction is permitted for taking possession of immovable properties against performance of contract in accordance with section 53A of Transfer of Property Act, 1882

(viii) Transaction is permitted for acquiring capital instruments in Indian companies through agreement or arrangement or in other manner “any” for enjoyment of immovable properties

(ix) (a) Real estate business is to include dealing (trading) in land and immovable properties for earning profits

(b) Real estate business is not to include certain activities like:

• Development of townships
• Construction of residential premises
• Construction of commercial premises
• Construction of roads
• Construction of bridges
• Construction of hotels
• Construction of resorts
• Construction of hospitals
• Construction of educational institutions
• Construction of recreational facilities
• Construction of city and regional level infrastructure

(x) FIs in units of Real Estate Investment Trusts (REITs) duly registered + also regulated “both” in accordance with Securities and Exchange Board of India (REITs) Regulations, 2014 are not treated real estate business in India

(xi) Rental incomes for property’s leasing are not treated real estate business in India

(xii) Real estate broking services are not treated real estate business in India

(K) Industrial parks activities (Table Part-XI)

337. What are 100% FIs for Industrial Parks activities?

• 100% FIs are permitted under “automatic” route for Industrial parks project where quality infrastructure is provided through plots of developed land + built-up space + also combination with common facilities are developed + also made available to 100% allottee units for industrial activities “only”.

338. What are Infrastructures for Industrial Parks?

• Infrastructure is to include facilities for functioning of units located in Industrial Park like:

(i) All roads

(ii) Main roads

(iii) Approach roads

(iv) Siding railway lines

(v) Electrified railway lines

(vii) Connectivity to main railway lines

(viii) Water supply

(ix) Sewerage lines

(x) Common effluent treatment facility

(xi) Telecom network

(xii) Generation and distribution power

(xiii) Air conditioning

339. What are Infrastructures for Common facilities?

• Common facilities are to include facilities for functioning of units located in Industrial Park like:

(i) Facilities for power

(ii) Approach roads

(iii) Siding railway line

(iv) Electrified railway lines

(v) Connectivity to main railway line

(vi) Water supply

(vii) Sewerage

(viii) Common effluent treatment facility

(ix) Common testing

(x) Telecom services

(xi0 Air conditioning

(xii) Common facility buildings

(xiii) Industrial canteens

(xiv) Convention halls

(xv) Conference halls

(xvi) Parking

(xvii) Travel desks

(xviii) Security service

(xix) First(aid center

(xx) Ambulance

(xxi) Other safety services

(xxii) Training facilities

(xxiii) Other facilities meant for common use of units

340. What are Infrastructures for Allocable area?

• Allocable area in industrial park is to include certain areas for functioning of units located in Industrial Park like:

(i) Net site area available for allocation to unit –(minus) area for common facilities against plots of developed land

(ii) Floor area + also built-up area “both” for providing common facilities against built-up space

(iii) Net site area + floor area available for allocation to units –(minus) site area –(minus) built-up space utilized for providing common facilities against combination of developed land + also built-up space “all”

341. What are Industrial activities?

• Industrial activities are to include certain activities like:

(i) Manufacturing activities

(ii) Electricity generating activities

(iii) Gas and water supply activities

(iv) Post and telecommunications activities

(v) Software publishing activities

(vi) Consultancy and supply activities

(vii) Data processing activities

(viii) Database activities

(ix) Data distribution of electronic content activities

(x) Other computer related activities

(xi) Basic and applied research and development on bio-technology activities

(xii) Pharmaceutical sciences or life sciences activities

(xiii) Natural sciences and engineering activities

(xiv) Business and management consultancy activities

(xv) Architectural activities

(xvi) Engineering activities

(xvii) Other technical activities

342. What are 100% FIs for Industrial parks activities?

• 100% FIs are permitted under “automatic” route subject to satisfying certain conditions like:

(i) (a) 1 industrial park is required minimum 10 units(b) 1 unit is not permitted to occupy more than 50% of allocable area allotted to 1 industrial park

(ii) 1 industrial park is required to allot minimum 66% of “total” allocable area for industrial activities “only”

(L) Satellites activities (Table Part-XII)

343. What are 100% FIs for Satellites?

• 100% FIs are permitted under “approval” route subject to satisfying sectoral guidelines issued by Department of Space or Indian Space Research Organization (ISRO)

(M) Private Security Agencies (PSAs) activities (Table Part-XIII)

344. What are 49% FIs for PSAs activities?

• 49% FIs are permitted under “approval” route

(N) Telecom activities (Table Part-XIV)

345. What are 100% FIs for Telecom activities?

• 100% FIs are permitted under “automatic” route for certain activities like:

(i) 100% telecom services

(ii) 100% Telecom Infrastructure services

(iii) 100% Basic services

(iv) 100% Cellular services

(v) 100% United Access Services

(vi) 100% Unified license services

(vii) 100% National long-distance services

(viii) 100% International long-distance services

(ix) 100% Commercial V-Sat services

(x) 100% Public Mobile Radio Trunked Services (PMRTS)

(xi) 100% Global Mobile Personal Communications Services (GMPCS)

(xi) 100% ISP licenses services

(xii) 100% Voice Mail services

(xiii) 100% Audiotex services

(xiv) 100% UMS services

(xv) 100% Resale of IPLC services

(xvi) 100% Mobile Number Portability services

(xvii) 100% Infrastructure Provider services for dark fibre + right of way + duct space + also tower “all”

(xviii)100% other related services

(xix) 100% other services considered necessary by Department of Telecommunications (DoT)

346. What are requirements for Telecom activities?

• Licenses + entities providing services are required to obey 100% conditions notified by DoT from time to time for licensing + security + also etc. “all”

(O) Trading activities (Table Part-XV)

(O-1) Cash and Carry Wholesale Trading/Wholesale trading activities (Table Part-XV(1))

347. What are FIs for Cash and Carry Wholesale Trading activities?

• 100% FIs are permitted under “automatic” route for cash and carry wholesale trading like sale of goods + merchandise to retailers + to industries + to commercial organizations + to institutional organizations + to other professional business users + to other wholesalers + also to related subordinated service providers “all”.

348. What are FIs for Wholesale Trading (WT) activities?

(i) 100% FIs are permitted under “automatic” route for WT like sales for trade + business + profession + also personal consumption “all”.

(ii) (a) WT is not to include customers based on size + also volume of sales “both”

But

(b) To include based on type of customers like for re-sale + processing + sale after processing + bulk imports with exports or ex-bonded warehouse business sales + also B2B e-commerce “all”

349. What are requirements for Trading activities?

(i) Indian companies are required to obtain requisites licenses or registrations or permits specified under relevant acts or regulations or rules or orders of state govt. or govt. bodies or govt. authorities or local bodies “any”

(ii) Cash and carry wholesale trading / wholesale trading are required to treat when sale is made to valid business entities subject to satisfying certain conditions like:

(a) That purchaser entities are holding GST registration

(b) That purchaser entities are holding trade licenses

(c) That purchaser entities are holding tehbazari or similar licenses for hawkers

(d) That purchaser institutions are holding certificate of incorporations or registrations as society or public trust “any” for self-consumption

(iii) Trade licenses are to include certain licenses like:

(a) Licenses

(b) Registration certificate

(c) Membership certificate

(d) Registration under Shops and Establishment act

(iv) Indian companies are required to obey certain conditions like:

(a) That 100% records are required to maintain on day-to-day basis with certain details like:

• Name of purchaser’ entities
• Registration / license / permit / etc. of purchaser’ entities
• Amount of sale to purchaser’ entities
• Etc.
• (b) That WT of goods are “also” permitted among same group’ companies

But

• WT of goods among same group companies are not to exceed 25% of total turnover

(c) That WT of goods are required to undertake in accordance with normal business practices + also credit facilities “both” subject to satisfying applicable regulations

(d) Cash and carry wholesale trading + also wholesale trading “both” are required to undertake for 1 (single) brand retail trading

(v) (a) Indian companies are required to maintain separate books of accounts for undertaking Cash and carry wholesale trading + also wholesale trading “both” duly audited by statutory auditors.

(b) Indian companies are required to comply applicable rules separately for undertaking Cash and carry wholesale trading + also wholesale trading “both”

(O-2) E-Commerce activities (Table Part-XV(2))

350.What are 100% FIs for B2B E-commerce activities?

(i) 100% FIs are permitted under “automatic” route for investments in Indian domestic companies those are engaged in Business to Business (B2B) e-commerce activities “only”

(ii) These companies are not permitted to engage “other than” B2B e-commerce activities

(iii) These companies are not permitted to invest “in trading” of B2B e-commerce activities

351. What are 100% FIs for market place mode of e-commerce activities?

• 100% FIs are permitted under “automatic” route for market place mode of e-commerce activities

352. What are requirements for E-commerce activities?

(i) That E-commerce is to include buying and selling of goods and services + also digital products over digital and electronic network “both”

(ii) That E-commerce entity is to include company incorporated under CA, 1956 / CA, 2013

(iii) That Inventory based model of e-commerce’ to include e-commerce activities where inventory of goods and services is owned by e-commerce entities + also to sale to consumers directly “both”

(iv) That Market place model of e-commerce to include providing of information technology platform by e-commerce entities on digital network + also electronic network “both” for acting as facilitator between buyer and seller.

(v) That Digital and electronic network to include network of computers + television channels + other internet applications used in automated manner like web pages + extranets + mobiles + also etc. “all”.

(vi) That Marketplace e-commerce entities are permitted to enter into transactions with sellers registered on its platform on B2B basis.

(vii) That E-commerce marketplace is permitted to provide support services to sellers for warehousing + logistics + order fulfilment + call center + payment collection + also other services “all”.

(viii) (a) That E-commerce entities are permitted to provide marketplace

But

(b) E-commerce entities are not permitted to exercise ownership over inventories for goods purported to be sold.

353. What are Clarifications for E-commerce activities?

• Inventory of vendors are required to deem controlled by e-commerce marketplace entities when exceeding 25% of purchases of vendors are from market place entities or from its group companies those are to render business on inventory-based model

(i) That entities those are having equity participation by e-commerce market place entities or by its group companies or having control on its inventory by e-commerce marketplace entities or by its group companies “any” is not permitted to sell its products on platform run by same market place entities.

(ii) (a) That sellers are required to provide names + addresses + also other contact details “all” when goods and services are available for sale on website

(b) That sellers are required to provide customer’s satisfying post sales + also delivery of goods to customers “both”

(iii) That sellers are required to receive payments for sale of goods and services in accordance to RBI’s guidelines

(iv) That sellers are required to provide guarantees / warranties for sale of goods and services

(v) That sellers are required not to influence sale price of goods and services + also to maintain level playing field for customers “both”

(vi) That sellers are required to maintain Arm Length Principles (ALPs) + also fair and non-discriminatory manner “both”

(vii) That sellers are permitted to receive cash back from group companies for giving to buyers therefore same is treated fair + also non-discriminatory “both”

(viii) That sellers are required to sale on same price + same conditions to different purchasers therefore same is treated fair + also non-discriminatory “all”

(ix) That sellers are required to obey RBI’s guidelines for cash and carry wholesale trading against B2B e-commerce

(x) That sellers are not permitted to sale exclusively on its platform.

(xi) That sellers are required to obtain report from statutory auditors up to 30^th every year for preceding financial year confirming compliance of e-commerce guidelines.

(xii) That FIs are not permitted for inventory-based model of e-commerce

(xiii) That FIs are permitted under “automatic” route for sale of services through e-commerce subject to satisfying sector specific requirements + applicable laws + regulations + securities + also other conditionalities “all”

(O-3) Single Brand Product Retail Trading (SBRT) activities (Table Part-XV(3))

354. What are 100% FIs for SBRT activities?

• 100% FIs are permitted under “automatic” route for SBRT to attract investments in production + marketing + improving availability of goods for consumers + encouraging increased sourcing of goods from India + enhancing competitiveness of Indian enterprises through access to global designs + technologies + also management practices “all”

355. What are requirements for SBRT activities in single brand?

(i) (a) That SBRT entities are permitted to sale single brand.

(b) That SBRT entities are not permitted to sale multiple brands.

(ii) (a) That SBRT entities are permitted to sale same brand across the world.

(b) That SBRT entities are not permitted to sale another brand in India

(iii) (a) That SBRT entities are permitted to sale single brand which is branded “before” manufacturing

(b) That SBRT entities are not permitted to sale single brand which is branded “after” manufacturing

(iv) That minimum 30% value of goods are required to procure from India when FIs is exceeding 51% like:

(a) From MSMEs

(b) From Village and cottage industries

(c) From Artisans and craftsmen

(d) From etc.

(v) (a) 30% quantum for domestic sources are required to certify by Indian companies + also by Statutory auditors “both”

(b) 30% quantum for domestic sources are required to maintain on annual basis

(vi) 30% quantum for domestic sources are required to maintain for domestic sales + also export sales “both”

(vii) (a) SBRT entities are permitted to sale in e-commerce through brick-and-mortars stores

(b) SBRT entities are permitted to sale in e-commerce “before” opening brick-and-mortars stores when opens within 2 years from date of start of online retail

356. What are requirements for SBRT activities in Indian brand?

(i) That SBRT entities are permitted to sale “Indian brands” when these are owned + controlled by resident Indian citizens or Indian companies which are owned + also controlled by resident Indian citizens “all”

(ii) That SBRT entities are not required to obey 30% quantum for domestic sources for 3 years from commencement of business when “Indian brands” are required to sale

(O-4) Multi Brand Retail Trading (MBRT) activities (Table Part-XV(4))

357. What are 51% FIs for MBRT activities?

• 51% FIs are permitted under “approval” route for MBRT activities

358. What are requirements for MBRT activities?

(i) That MBRT entities are permitted to sale branded / unbranded fresh agricultural produces + fruits + vegetables + flowers + grains + pulses + fresh poultries + fisheries + also meat products “all”

(ii) That minimum FIs are required for USD 100 million

(iii) That minimum 50% FIs in 1^st trench of USD 100 million are required to invest for back-end infrastructure within 3 years

(iv) That back-end infrastructures are to include capital expenditures for 100% activities by MBRT retailer considered necessary for business requirements like:

(a) Capital expenditures incurred for processing’s

(b) Capital expenditures incurred for manufacturing’s

(c) Capital expenditures incurred for distributions

(d) Capital expenditures incurred for design improvements

(e) Capital expenditures incurred for quality controls

(f) Capital expenditures incurred for packaging’s

(g) Capital expenditures incurred for logistics

(h) Capital expenditures incurred for storages

(i) Capital expenditures incurred for warehouses

(j) Capital expenditures incurred for agriculture market produce infrastructures

(k) Capital expenditures incurred for etc.

(v) That back-end infrastructures are not to include certain capital expenditures like:

(a) Capital expenditures incurred for front-end units

(b) Capital expenditures incurred for land cost

(c) Capital expenditures incurred for rental cost

(vi) That minimum 30% of value of procurement for manufactured products + also processed products “both” purchases are required to source from Indian Micro, Small and Medium Enterprises (MSME) where “total” value of investments in plant and machinery is not exceeding USD 2 million.

(vii)That values are to include value at time of installation “without” providing for depreciation.

(viii) That small industry status is to determine at time of 1^st engagement with retailer + also industry is required to continue to qualify as small industry “both” beside investments are exceeding USD 2 million during course of relationship with MBRT retailer

(ix) (a) That sourcing from agricultural co-operatives + also farmers co-operatives “both” are required to consider in this category.

(b) That procurement compliances are required to meet in 1^st instance as average of 5 years’ total of manufactured products + also processed products “both” purchases, beginning 1^st April of year in which 1^st tranche of FIs “out of total” USD 100 million are received thereafter required to determine on annual basis

(x) That MBRT entities are required to self-certify + also to obtain certificate from statutory auditors “both” for ensuring compliance of these requirements

(xi) (a) That retail sales outlets are required to set up in cities where population is exceeding 10 lac as per 2011 census + also other cities where decision is taken by respective State with covering 10 km area “both”.

(b) That retail sales outlets are required to around municipal or urban agglomeration limits of cities

(c) That retail sales outlets are required to restrict within conforming areas as per Master Plans or Zonal Plans of respective cities + provisions to be made for requisite facilities like transport connectivity + also parking “all”.

(xii) That govt. is permitted to have 1^st right to procure agricultural products

(xiii) (a) That State’s + also union territories “both” are permitted to take their own decisions for implementation of policies.

(b) That retail sales outlets are required to set up in those states + also union territories “both” when they have already agreed or to be agreed in future for allowing FIs in MBRT

(c) That state govt. + also union territories “both” are required to send acceptance to govt. of India for establishing retail outlet under MBRT through Department of Industrial Policy and Promotion.

(d) That MBRT are required to comply prevailing state govt. + union territories laws + regulations like Shops and Establishments Act + also etc. “all”

(xiv) That retail trading through e-commerce is not permitted for Indian companies with FIs + also engaged in multi brand retail trading “both”

(xv) That applications are required to process in Department of Industrial Policy and Promotion for determining whether proposed investments are satisfying notified guidelines “before” considering for approval.

359. What are States + Union territories for MBRT activities?

(i) States

(a) Andhra Pradesh

(b) Assam

(c) Delhi

(d) Haryana

(e) Himachal Pradesh

(f) Jammu and Kashmir (J&K)

(g) Karnataka

(h) Maharashtra

(i) Manipur

(j) Rajasthan

(k) Uttarakhand

(ii) Union Territories

(a) Daman and Diu

(b) Dadra and Nagar Haveli

(O-5) Duty Free Shops activities (Table Part-XV(5))

360. What are 100% FIs for Duty free shops activities?

• 100% FIs are permitted under “approval” route for duty free shops activities

361. What are requirements for Duty free shops activities?

(i) That Duty Free Shops are to include shops set up in custom bonded area at International Airports + International Seaports + also Land Custom Stations “all” where international passengers are transiting.

(ii) That FIs in Duty Free Shops are required to comply conditions stipulated under Customs Act, 1962 + other laws + also rules and regulations “all”.

(iii) That Duty Free Shops entities are not permitted to engage for retail trading in Domestic Tariff Area (DTA).

(P) Pharmaceuticals activities (Table Part-XVI)

362. What are 100% FIs for Greenfield activities?

• 100% FIs are permitted under “automatic” route for greenfield activities

363. What are 74% FIs for Brownfield activities?

• 74% FIs are permitted under “automatic” route for brownfield activities

364. What are 100% FIs for Brownfield activities?

• 100% FIs are permitted under “approval” route for brownfield activities

365. What are requirements for pharmaceuticals activities?

(i) (a) That Non-Compete (NA) clause is not permitted

(b) That NA clause is permitted under “approval” route for special circumstances.

(ii) That prospective investors + also prospective investees “both” are required to provide certificate along with application to be submitted for approval.

(iii) That govt. is permitted to incorporate conditions for FIs in brownfield pharmaceuticals under “approval” route.

(iv) That FIs in brownfield pharmaceuticals are required to satisfy conditions for entry route + also other conditions “both” like:

(a) That production level for National List of Essential Medicines (NLEM) drugs + consumables + also their supply to domestic market at time of induction of FIs“all” are required to maintain for next 5 years at Absolute Quantitative (AQ) level.

(b) That benchmark for AQ level is required to decide with reference to production of NLEM drugs + also consumables “both” in 3 years immediately preceding to year of induction of FIs

(c) That highest level of productions during these 3 financial years are required to take as AQ level.

(d) That Research and Development (R&D) expenses are required to maintain for 5 years at AQ level at time of induction of FIs.

(e) That benchmark for AQ level is required to decide with reference to highest R&D expenses incurred in 3 financial years immediately preceding year of induction of FIs

(f) That administrative Ministry is required to provide 100% information’s for transfer of technology “if any” along with induction of FIs into Indian companies.

(g) That administrative Ministry(s) i.e. Ministry of Health and Family Welfare, Department of Pharmaceuticals + other regulatory Agency/Development “both” notified by Central from time to time are required to monitor compliances of conditionalities

366. What are Clarifications for pharmaceuticals activities?

(i) 100% FIs are permitted under “automatic” route for manufacturing of medical devices therefore these requirements are not applicable for greenfield projects + also brownfield projects “both”

(ii) Medical device is to include instruments + apparatus + appliance + implant + material + other article + software used alone or in combination “all” for human beings or animals for minimum 1 specific purposes like:

(a) Diagnosis + preventions + monitoring’s + treatments + also alleviations for diseases or disorders “all”

(b) Diagnosis + monitoring’s + treatments + alleviations + also assistance for injuries or disabilities “all”

(c) Investigations + replacements + modifications + support of anatomies + also physiological process “all”

(d) Supporting life + also sustaining life “both”

(e) Disinfection of medical devices

(f) Control of conceptions

(iii) Accessory to instruments + apparatus + appliances + materials + other articles “all”.

(iv) In-vitro diagnostic device

367. What are Certificates by investors + investees?

It is certified that the following is the complete list of all inter se agreements, including the shareholders agreement, entered into between foreign investor(s) and investee brownfield pharmaceutical entity

1. ………………

2. ……………….

3. ……………….

(copies of all agreements to be enclosed)

It is also certified that none of the inter se agreements, including the shareholders agreement, entered into between foreign investor(s) and investee brownfield pharmaceutical entity contain any non-compete clause in any form whatsoever.

It is further certified that there are no other contracts/agreements between the foreign investor(s) and investee brownfield pharma entity other than those listed above.

The foreign investor(s) and investee brownfield pharma entity undertake to submit to the FIPB any inter se agreements that may be entered into between them subsequent to the submission and consideration of this application.

(Q) Railway Infrastructure activities (Table Part-XVII)

368. What are 100% FIs for Railway infrastructure activities?

• 100% FIs are permitted under “automatic” route for certain railway infrastructure activities like:

(i) Suburban corridor projects through Private Public Partnership (PPP)

(ii) High-speed train projects

(iii) Dedicated freight lines

(iv) Rolling stock + trainsets + locomotives/coaches manufacturing + also maintenance facilities “all”

(v) Railway electrifications

(vi) Signalling systems

(vii) Freight terminals

(viii) Passenger terminals

(ix) Infrastructure in industrial park for railway line/sidings + electrified railway lines + also connectivity to main railway line “all”

(x) Mass rapid transport systems

369. What are requirements for Railway infrastructures activities?

(i) That FIs are permitted for railway infrastructure activities by PPP subject to satisfying certain guidelines issued by Ministry of Railways (MoRs)

(ii) That 100% FIs for sensitive areas are required to present by MoRs before Cabinet Committee on Security (CCS) for consideration on case-to-case basis.

(Q-1) Financial activities (Table Part-XVIII(1))

370. What are FIs for Financial activities?

(i) FIs are permitted under “approval” route for financial services

(ii) FIs are permitted under “automatic” route for “certain” financial services

371. What are 100% FIs for Asset Reconstruction Companies (ARCs)?

(i) 100% FIs are permitted under “automatic” route for ARCs

(ii) FIs in ARCs are permitted to invest by institutional + also non-institutional “both” investors

(iii) FIs in ARCs are permitted to invest by FPIs in Security Receipts (SRs) issued by ARCs up to 100% of each trench subject to satisfying RBI’s directions / guidelines + also within applicable regulatory cap “both”

(iv) 100% FIs in ARCs by foreign institutional + foreign non-institutional + also FPIs “all” are permitted to invest subject to satisfying provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

(Q-2) Private Sector’s Banks (PSBs) activities (Table Part-XVIII(2))

372. What are 49% FIs for PSBs?

• 49% FIs are permitted under “automatic” route for PSBs

373. What are 74% FIs for PSBs?

• 74% FIs are permitted under “approval” route for PSBs

374. What are requirements for PSBs?

(i) That minimum 26% of paid-up capitals are required to hold by RoI

(ii) That minimum 0% of paid-up capitals are required to hold by RoI when PSBs is wholly (100%) owned subsidiary of foreign bank

(iii) That maximum 5% FIs are permitted to hold by 1 NRI on “repatriation” basis + also “non-patriation” basis “both”

(iv) That maximum 10% FIs are permitted to hold by minimum 2 NRIs on “repatriation” basis + also “non-patriation” basis “both”

(v) That maximum 24% FIs are permitted to hold by minimum 2 NRIs on “repatriation” basis + also “non-patriation” basis “both” when special resolution is passed in Annual General Meeting (AGM) or Extra Ordinary General Meeting (EGM) of Public Sector Banks (PSBs) shareholders

(vi) That applications for FIs in PSBs those are having Joint Venture (JV) or subsidiary in insurance sector are required to file to RBI for consideration in consultation with Insurance Regulatory and Development Authority of India (IRDAI) for ensuring that insurance sectors’ cap is not breached

(vii) That FIs through transfers of shares from RoI to Non-RoI are required to obtain approvals from RBI or govt. as case may be

(viii) That FIs in PSBs are required to comply policies + procedures prescribed by RBI + SEBI + MCA + also IRDAI “all”

(ix) That FIs in PSBs are required to comply RBI’s guidelines for acquisition through purchase + also otherwise “both” when acquisition is crossing shareholding 5% or more than 5% of paid-up capital

375. What are requirements for Setting up of subsidiary by Foreign Banks (FBs)?

(i) That FBs are permitted for branches or subsidiaries “only”

(ii) That FBs are not permitted for branches + also subsidiaries “both”

(iii) That FBs are permitted for subsidiaries in India subject to satisfying certain conditions like:

(a) That FBs are regulated by banking in home countries

(b) That FBs are required to match RBI’s licensing criteria for setting-up wholly (100%) owned subsidiary in India

(iv) That FBs are permitted to operate in India through 1 channel within available 3 channels like:

(a) FBs’ branches in India

b) FBs’ wholly (100%) owned subsidiary in India

(c) FBs’ partly (74%) owned subsidiary like private banks in India

(v) (a) FBs are permitted to establish wholly (100%) owned subsidiary through conversion of existing branch into subsidiary in India

or

(b) FBs are permitted to obtain “fresh” banking license from RBI

(vi) FBs are permitted to establish partly (74%) owned subsidiary through acquisition of shares in Private Sector Banks (PSBs) when minimum 26% paid-up capital are held by RoI

(vii) FBs are required to obtain license from RBI for establishing wholly (100%) owned subsidiary where license’ requirements are same to establish new PSBs in India

(viii) FBs are required to satisfy RBI’s guidelines for setting up wholly (100%) owned subsidiary in India

(ix) (a) FBs are required to file applications to RBI for setting up wholly (100%) owned subsidiary in India

(b) FBs are required to file applications to RBI for converting branches into wholly (100%) owned subsidiary in India

(x) Banking companies in India are required to obey existing limit 10% for voting rights by potential investors.

(xi) 100% FIs are required to obey RBI’s guidelines prescribed for PSBs under Banking Regulation Act, 1949 + also Reserve Bank of India (RBI) Act, 1934 “both”

(Q-3) Public Sector Banks (PSBs) activities (Table Part-XVIII(3))

376. What are 20% FIs for PSBs?

• 20% FIs are permitted under “approval” route for PSBs + also State Bank of India (SBI) “both” subject to satisfying Banking Companies (Acquisition & Transfer of Undertakings) Acts, 1970/80

(Q-4) Infrastructure Companies in Securities Market activities (Table Part-XVIII(4))

377. What are 49% FIs for Infrastructure Companies in Securities Market?

• 49% FIs are permitted under “automatic” route for Infrastructure companies in Securities Markets subject to satisfying SEBI’s Regulations like:

(i) Stock exchanges

(ii) Commodity derivative exchanges

(iii) Depositories and clearing corporations

378. What are requirements for Infrastructure Companies in Securities Market?

(i) That FIs + FPIs are required to obey guidelines + rules + also regulations “all” issued by certain regulators like:

(a) Central govt. from time to time

(b) SEBI from time to time

(c) RBI from time to time

(ii) Words + also expressions “both” used but not defined in NDI Rules, 2019 shall have same meaning as defined in certain acts like:

(a) Companies Act, 2013 (18 of 2013)

(b) Securities Contracts (Regulation) Act, 1956 (42 of 1956)

(c) Securities and Exchange Board of India Act, 1992 (15 of 1992)

(d) Depositories Act, 1996 (22 of 1996)

(Q-5) Commodities Spot Exchange activities (Table Part-XVIII(5))

379. What are 49% FIs for Commodities Spot Exchange activities?

• 49% FIs are permitted under “automatic” route for Commodities Spot Exchange subject to satisfying guidelines issued by Central govt. + also State govt. “both”

(Q-6) Power Exchanges activities (Table Part-XVIII(6))

380. What are 49% FIs for Power Exchanges activities?

• 49% FIs are permitted under “automatic” route for power exchanges under Central Electricity Regulatory Commission (Power Market) Regulations, 2010

381. What are requirements for Power Exchanges activities?

(i) That Non-RoI + also persons acting in concert “both” are not permitted to hold more than 5% of paid-up capital of Indian companies.

(ii) That FIs are required to obey certain compliances like

(a) SEBI’s regulations

(b) Other laws

(c) Other rules

(d)Other regulations

(e) Security + also other conditionalities “both”

(Q-7) Credit Information Companies (CICs) activities (Table Part-XVIII(7))

382. What are 100% FIs for CICs activities?

• 100% FIs are permitted under “automatic” route for CICs

383. What are requirements for CICs activities?

(i) That FIs by Non-RoI in CICs are required to satisfy certain conditions of Credit Information Companies (Regulation) Act, 2005 + also regulatory clearance from RBI “both”

(ii) That FIs by FPIs in CICs are required to obey certain conditions like:

(a) That 1 (Single) entity is permitted to hold FIs below 10% of equity capital of Indian companies directly + also indirectly “both”

(b) That FIs are required to report to RBI when acquisition is exceeding 1% of equity capital of Indian companies directly + also indirectly “both”

(c) That FIs by FPIs in CICs are not permitted to hold directorship in Board of Directors (BoDs) based on their shareholdings.

(Q-8) Insurance activities (Table Part-XVIII(8))

384. What are 100% FIs for Insurance activities?

• 100% FIs are permitted (from 74% FIs to 100% FIs through Finance Act, 2025) under “automatic” route for Insurance activities

385. What are 20% FIs for Life Insurance Corporation of India (LIC) activities?

• 20% FIs are permitted under “automatic” route for LIC

386. What are 100% FIs for Insurance intermediaries’ activities?

•  100% FIs are permitted under “automatic” route for insurance intermediaries like:

(a) Insurance Intermediaries

(b) Insurance brokers

(c) Re-insurance brokers

(d) Insurance consultants

(e) Corporate agents

(f) 3^rd party administrator

(g) Surveyors and Loss Assessors

 (h) Other entities as may be notified by Insurance Regulatory and Development Authority of India (IRDAI) from time to time

387. What are requirements for Insurance + Insurance intermediaries’ activities?

(i) That 100% FIs in Indian Insurance companies are to include certain investments “cumulatively” in paid-up capital + also insurance intermediaries’ companies “both” like:

(a)  FIs hold by Non-RoI

(b)  FIs hold by FPIs

(ii) That 100% FIs in Indian insurance companies are permitted under “automatic” route subject to approval / verification by IRDAI

(iii) That 100% FIs in Indian insurance companies are required to satisfy provisions of Insurance Act, 1938 + to obtain approval from IRDAI for undertaking insurance activities + also related activities “all”

(iv)  That Indian insurance companies are required to maintain certain postings by Resident Indian Citizens (RICs) like:

(a)  Majority of Directors e. “more than” 50% directors

(b)  Majority of Key Management Persons (KMPs) i.e. “more than” 50% KMPs

(c) Minimum 1 Chairperson of BoDs or 1 Managing Director (MD) + also Chief Executive Officer (CEO) “both”

388. What are Clarifications for Insurance + Insurance intermediaries’ activities?

(i)  Term KMP has same meaning as assigned in IRDAI’s guidelines on corporate governance for insurers in India.

(ii)  (a) Indian insurance companies are required to comply provisions applicable for Indian Insurance Companies (Foreign Investment) Rules, 2015

(b)  Rules + regulations “both” are notified by Department of Financial Services or by IRDAI as case may be

(iii)  FIs by FPIs in Indian insurance companies are required to obey provisions contained in Chapter IV + rule 10 + rule 11 read with Schedule II of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019

(iv)  FIs in Indian insurance companies are required to obey pricing guidelines specified in NDI Rules, 2019

(v)  100% FIs are required to obey these “all” conditions for insurance’s activities like:

(a) Insurance Intermediaries

(b) Insurance brokers

(c)  Re-insurance brokers

(d)  Insurance consultants

(e) Corporate agents

(f)  3^rd party administrator

(g)  Surveyors and Loss Assessors

(h)  Other entities as may be notified by Insurance Regulatory and Development Authority of India (IRDAI) from time to time

(vi) 100% FIs in IRDAI’s approved “banks” for insurance business are required to maintain minimum 50% revenue from banking business (non-insurance business) in “any” financial year subject to satisfying certain conditions applicable for insurance business

(vii) 100% FIs in insurance intermediaries are required to undertake certain legality like:

(a)  That insurance intermediaries are required to incorporate as limited companies under CA, 2013

(b) That minimum 1 RIC is required to become Chairman of BoDs or CEO or Principal Officer (PO) or MD of insurance intermediary companies

(c) That Indian insurance companies are required to obtain IRDAI’s permission for repatriating dividend outside India

(d) That FIs are required to bring latest technological + managerial + also other skills “all”

(e) That Indian insurance companies are not permitted to make payments to foreign group + promoter + subsidiary + interconnected + also associate entities “all” beyond permissible by IRDAI

(f) That Indian insurance companies are required to disclose 100% payments made to foreign group + promoter + subsidiary + interconnected + also associate entities “all”

(g)  That Indian insurance companies are required to make composition of BoDs + also KMPs “both” specified by IRDAI

(h)  That Indian Private Sector Banks (PSBs) are required to obey 100% conditions specified for insurance business by IRDAI

(i) That certain terms are to have same meaning as defined by rules issued under Insurance Act, 1938 + also IRDAI “both” like:

• • Equity Share Capitals
  • Foreign Direct Investments (FDIs)
  • Foreign Investors (FIs)
  • Foreign Portfolio Investments (FPIs)
  • Indian Insurance Companies
  • Indian Companies
  • Non-resident Entities
  • Public Financial Institutions
  • Resident Indian Citizens
  • Total Foreign Investments

389. What are requirements for LIC activities?

(i) That FIs in LIC to obey provisions of Life Insurance Corporation Act, 1956, (LIC Act) + also Insurance Act, 1938 “both” duly amended from time to time

(ii) That FIs in LIC are required to obey provisions contained in Chapter IV + rule 10 + rule 11 read with Schedule II of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019

(iii) That FIs in LIC are required to obey pricing guidelines specified in NDI Rules, 2019

(iv) That certain terms are to have same meaning as defined by rules issued under Insurance Act, 1938 + also IRDAI “both” like:

(a) Equity Share Capitals

(b) Foreign Direct Investments (FDIs)

(c) Foreign Investors (FIs)

(d) Foreign Portfolio Investments (FPIs)

(e) Indian Insurance Companies

(f) Indian Companies

(g) Non-resident Entities

(h) Public Financial Institutions

(i) Resident Indian Citizens

(j) Total Foreign Investments

(Q-9) Pension sector activities (Table Part-XVIII(9))

390. What are 49% FIs for Pension sector activities?

• 49% FIs are permitted under “automatic” route for pension sector activities

391. What are requirements for Pension sector activities?

(i) That FIs in pension sector activities are required to obey provisions of Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013

(ii) That FIs in pension sector activities are required to obtain registration from PFRDA + to comply provisions of PFRDA Act, 2013 + rules + also regulations “all” for participating in Pension Fund Management activities in India.

(iii) That FIs in pension sector activities are required to ensure ownership + control mandatory with resident Indian entities as determined by govt. of India + also PFRDA in accordance with rules / regulations issued by them “all”.

(Q-10) Other Financial Services activities (Table Part-XVIII(10))

392. What are 100% FIs for Other financial activities?

• • 100% FIs are permitted under “automatic” route for other financial services activities

393. What are requirements for Other financial activities?

(i) That other financial services are to include financial services activities as regulated by financial sector regulators like:

(a) RBI

(b) SEBI

(c) IRDAI

(d) PFRDA

(e) National Housing Bank (NHB)

(f) Other financial sector regulator as may be notified by govt. of India

(ii) 100% FIs in other financial services are required to satisfy conditionalities + also Minimum Capitalization Norms (MCNs) “both” specified by concerned regulators / govt. agency

(iii) Each other financial services activity is required to regulate by financial sector regulator

(iv) Other financial services activities are required to receive FIs under “approval” route subject to satisfying certain conditionalities + also MCNs as determined by govt. “both” where these services are not wholly (100%) or partly (not 100%) regulated by financial services regulators

(v) Downstream investments by entities engaged in other financial services are required to treat indirect FIs for Indian companies subject to satisfying regulators’ rules + also regulations “both”

Ä Foreign Exchange Management (Debt Instruments) Regulations, 2019 Ä

(A) DIs Regulations’ Introduction (Chapter-I)

394. What is Introduction?

(i) These regulations are known as Foreign Exchange Management (Debt Instruments) Regulations, 2019 or DIs Regulations, 2019

(ii) These are applicable from date of publication in official gazette like Oct 17, 2019

395. What is Act?

• Ä Act is to include Foreign Exchange Management Act (FEMA) 1999 (42 of 1999)

396. What are Asset Reconstruction Companies (ARCs)?

• Ä ARCs are to include RBI’s registered companies under section 3 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002)

397. What are Authorized Dealers (ADs)?

• Ä ADs are to include authorized persons under section 10(1) of FEMA, 1999

398. What are Debt Instruments (DIs)?

• Ä DIs are to include instruments listed under schedule 1 of DIs Regulations, 2019

399. What are Foreign Central Banks (FCBs)?

• Ä FCBs are to include institutions + organizations + body corporates established in countries located outside India + also entrusted with responsibility of carrying central bank’s functions i.e. RBI in India under law for time being force

400. What are Foreign Currency Non-Residents (FCNon-RoI) Bank accounts?

• Ä FCNR (B) accounts are to include Foreign Currency Non-Resident (Bank) account maintained in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

401. What are Foreign Portfolio Investors (FPIs)?

• Ä FPIs are to include person registered in accordance with provision of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014

402. What are Indian companies?

• Ä Indian companies are to include company incorporated in India.

403. What are Indian entities?

• Ä Indian entities are to include Indian company + also Indian LLP “both”

404. What are Investments?

• Ä Investments are to include subscription + acquisition + holding + transfer any debt instrument + also unit issued by RoI “all”

405. What are Investments on repatriation basis?

• Ä Investments on “repatriation” basis are to include investments + sales + maturity proceeds “after” taxes + also eligible to repatriate outside India “all”

406. What are Investments on non–repatriation basis?

(i) Investments on “non-repatriation” basis are to include investments + sales + maturity proceeds “after” taxes + also not eligible to repatriate outside India “all”

(ii) These sale proceeds received against sale of investments which were acquired on “non-repatriation” basis are permitted to repatriate outside India through NRO account maximum USD 10 lac (1 million) per financial year.

407. What are Mutual funds?

• Ä Mutual funds are to include entities governed by Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

408. What are LLPs?

• Ä LLPs are to include Limited Liability Partnerships (LLPs) formed + also registered “both” under Limited Liability Partnership (LLP) Act, 2008 (6 of 2009)

409. What are Listed Indian companies?

• Ä Listed Indian companies are to include companies which have listed its NDIs / DIs on recognized stock exchange(s) in India

410. What are Non-listed Indian companies?

• Ä “Non” listed Indian companies are to include Indian companies which have not listed its NDIs / DIs on recognized stock exchange(s) in India

411. What are Municipal bonds?

• Ä Municipal bonds are to include DIs issued by municipalities constituted under Article 243Q of Constitution of India

412. What are Non-Resident Indians (NRIs)?

• Ä NRIs are to include resident Individuals outside India + also citizens in India “both”

413. What is Overseas Citizen of India (OCI)?

• Ä OCIs are to include resident Individuals outside India + also registered as Overseas Citizen of India (OCIs) Cardholders under section 7(A) of Citizenship Act, 1955 (57 of 1955) “both”

414. What are Units?

• Ä Units are to include beneficial interest of investor in mutual fund

415. What are Venture Capital Funds (VCFs)?

• Ä VCFs are to include fund established as trusts or companies or body corporates + also registered under Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 “both”

416. What are Words + expressions not defined?

• Ä Words + expressions used but not defined in DIs Regulations, 2019 shall have same meanings as assigned in FEMA, 2019 + FEMA’s rules + FEMA’s regulations + FEMA’s directions + also NDI Rules, 2019 “all”

(B) DIs Regulations’ General Conditions for 100% Investors (Chapter-II)

417. What are Restrictions for Non-RoI?

(i)  Non-RoI are not permitted to invest in DIs in India without obeying legal compliances in accordance with certain acts + rules + also etc. “all” like:

(a)  FEMA Act, 1999

(b)  FEMA Rules

(c)  FEMA Regulations

(d)  FEMA Directions

(e)  DIs Regulations, 2019

(ii) RBI is permitted to allow “to invest” in DIs based on their applications when considered necessary with / without conditions are required to obey

418. What are Restrictions for RoI?

(i) RoI are not permitted to receive + also to record in books “both” without obtaining RBI’s approvals. These RoI are to include certain entities like:

(a) Indian companies

(b)  Indian LLPs

(c)  Indian Mutual fund

(d)  Indian VCFs

(e)  Indian Partnership firms

(f)  Indian Association of Persons (AoPs)

(g)  Indian Proprietary concern

(ii) RBI is permitted to allow “to receive” in DIs based on their applications when considered necessary with / without conditions are required to obey

419. What are Permissions by Non-RoI?

(i)  Non-RoI are required to comply legal guidelines like:

(a)  Guidelines for entry routes e. Automatic route & Govt.’s approval route

(b)  Guidelines for sectoral caps

(c)  Guidelines for statutory caps

(d)  Guidelines for investments’ limits

(e)  Guidelines for pricings

(f) Guidelines for other “mandatory” conditions

(ii)  Non-RoI are required to obtain RBI’s approval for purchases/sales in DIs in accordance with conditions specified in Schedule-1 of DIs Regulations, 2019

(iii)  Non-RoI are permitted to trade in 100% Exchange Traded Derivative (ETD) Contracts duly approved by SEBI from time to time subject to satisfying limits prescribed by SEBI + also terms conditions specified in Schedule-1 of DIs Regulations, 2019 “both”

(iv) Non-RoI are permitted to enter into contracts for derivative transactions subject to satisfying certain conditions laid down by RBI from time to time.

420. What are Merger/Demerger/Amalgamation?

(i) Non-RoI are permitted to invest in DIs where Scheme of Arrangement for Indian companies have been approved by National Company Law Tribunal (NCLT) like:

(a) Non-convertible redeemable preference shares

(b) Non-convertible redeemable debentures

(ii) Indian companies are permitted to issue these DIs out of its general reserves through distribution as bonus to Non-RoI shareholders subject to satisfying certain conditions like:

(a) That original investments in DIs by Non-RoI were in accordance with DIs Regulations, 2019 + also conditions specified in relevant schedule “both”

(b) That Indian companies are required to issue DIs in accordance with provisions of CA, 2013 + also conditions as stipulated in scheme approved by NCLT “both” have been complied

(c) That Indian companies are required not to engage in activities / sectors where FIs in NDIs by Non-RoI are prohibited

421. What are Taxes?

• Ä 100% transactions under DIs Regulations, 2019 are required to undertake through banking channels in India + subject to payment of applicable taxes + also other duties/ levies in India “all”.

422. What are Remittance?

(i)  Non-RoI are required to remit sales proceeds against DIs in accordance with DIs Regulations, 2019 + also conditions specified in relevant schedule “both”

(ii)  AD-Category I Banks are permitted to remit sales proceeds against DIs “after” applicable taxes when DIs were held by Non-RoI on “repatriation” basis

(iii)  Non-RoI are required to obtain RBI’s approval when DIs were held by Non-RoI on “non-repatriation” basis

(iv) AD-Category-I Banks are required to allow inwards + also outwards “both” remittances for permissible derivatives transactions.

Schedule-I of DIs Regulations, 2019 Ä

(A) Purchases / sales of DIs by Non-RoI

¿ Purchases of DIs by Non-RoI ¿

423. What are Purchases by FPIs?

(i) Foreign Portfolio Investors (FPIs) are permitted to purchase certain DIs on “repatriation” basis subject to satisfying conditions specified by SEBI + also RBI “both” like:

(a)  Dated Government securities + also treasury bills “both”

(b)  Non-convertible debentures + also bonds issued by Indian companies “both”

(c)  Commercial papers issued by Indian companies

(d)  Units of domestic mutual funds + also Exchange-Traded Funds (ETFs) “both” when these funds are investing not exceeding 50% in NDIs

(e)  Security Receipts (SRs) issued by Asset Reconstruction Companies (ARCs)

(f)  DIs issued by banks when these banks are eligible for inclusion in regulatory capital

(g)  Credit Enhanced Bonds (CEBs)

(h)  Listed non-convertible shares + redeemable preference shares + also debentures “all” issued in accordance Regulation 6 of DIs Regulations, 2019

(i)  Securitised debt instruments + certificates + instruments issued by Special Purpose Vehicle (SPV) set up for securitisation of assets with banks + Financial Institutions + also NBFCs as originators “all”

(j)  Rupee denominated bonds + units issued by Infrastructure Debt Funds when these instruments were issued from Nov 22, 2011 + also held by deemed FPIs “all”

(k)  Municipal Bonds (MBs)

(iv) FPIs are permitted to offer these DIs to recognized stock exchange(s) in India as collateral security for their transactions in ETD contracts as specified in Regulation 5(2) of DIs Regulations, 2019.

424. What are Purchases by NRIs + OCIs on “repatriation” basis?

(i) Foreign Portfolio Investors (FPIs) are permitted to purchase certain DIs on “repatriation” basis without monetary limit subject to satisfying conditions specified by SEBI + also RBI “both” like:

(a) Dated Government securities other than bearer securities + treasury bills + units of domestic mutual funds + also ETFs “all” when these funds are investing not exceeding 50% in NDIs

(b) Bonds issued by Public Sector Undertaking (PSU) in India

(c) Bonds issued by Infrastructure Debt Funds (IDFs)

(d) Listed non-convertible shares + redeemable preference shares + also debentures “all” issued in accordance with Regulation 6 of DIs Regulations 2019

(ii) NRIs + also OCIs “both” are permitted to purchase DIs on “repatriation” basis issued by banks when these banks are eligible for inclusion in regulatory capital

(iii) (a) NRIs are permitted to subscribe for National Pension System (NPS) which is being administered by Pension Fund Regulatory and Development Authority (PFRDA) when they are eligible to invest in accordance with provisions of PFRDA

(b) NPS based on annuity + also accumulated saving “both” are permitted for repatriation

(iii) NRIs + also OCIs “both” are permitted to offer these DIs to recognized stock exchange(s) in India as collateral security for their transactions in Exchange Traded Derivative (ETD) contracts as specified in Regulation 5(2) of DIs Regulations, 2019.

425. What are Purchases by NRIs + OCIs on “non-repatriation” basis?

(i) Foreign Portfolio Investors (FPIs) are permitted to purchase certain DIs on “non-repatriation” basis without monetary limit subject to satisfying conditions specified by SEBI + also RBI “both” like:

(a) Dated Government securities “other than” bearer securities + treasury bills + units of domestic mutual funds + also ETFs “all” when these funds are investing not exceeding 50% in NDIs

(b) National Plan Certificates (NPCs) + also Savings Certificates (SCs) “both”

(ii) NRIs + also OCIs “both” are permitted to purchase certain DIs on “non-repatriation” basis without monetary limit like:

(a) Listed non-convertible shares

(b) Listed redeemable preference shares

(c) Debentures issued in accordance with Regulations 6 of DIs Regulations, 2019

(iii) NRIs + also OCIs “both” are permitted to subscribe certain chit funds authorized by Registrar of chits or officer authorized by State govt. on “non-repatriation” basis without monetary limit.

426. What are Purchases by FCBs + MDBs?

• Ä Foreign Central Banks (FCBs) + Multilateral Development Banks (MDBs) + other RBI’s approved entities are permitted to purchase / sale dated Govt. Securities + also Govt. treasury bills on “repatriation” basis “all” in accordance with conditions as specified by RBI.

427. What are Payments by FPIs?

(i) FPIs are required to make payments for purchase of DIs through inward remittance from banking channel

Or

(ii) Through transfer from funds held in Foreign Currency (FC) account maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

Or

(iii) Through Special Non-Resident Rupee (SNRR) account maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

(iv) These FC account + also SNRR account “both” are required to use exclusively for transactions permitted under schedule-I of DIs Regulations, 2019.

428. What are Payments on “repatriation” basis by NRIs + OCIs?

(i) NRIs + also OCIs “both” are required to make payments for purchase of DIs on “repatriation” basis through inward remittance from banking channel

Or

(ii) Through transfer from funds held in Non-Resident External (NRE) accounts maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

Or

(iii) Through transfer from funds held in Foreign Currency Non-Resident (FCNR) Bank accounts maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

429. What are Payments on “non–repatriation” basis by NRIs + OCIs?

(i) NRIs + OCIs are required to make payments for purchase of DIs on “non-repatriation” basis + also for subscriptions to National Pension System (NPS) through inward remittance from banking channel

Or

(ii) Through transfer from funds held in Non-Resident External (NRE) accounts maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

Or

(iii) Through transfer from funds held in Foreign Currency Non-Resident (FCNR) Bank accounts maintained in India in accordance with Foreign Exchange Management (Deposit) Regulations, 2016

(iv) (a) NRIs + also OCIs “both” are permitted for subscription to NPS on “non-repatriation” basis “only”

(b) Hence NRIs + also OCIs “both” are not permitted for subscription to NPS on “repatriation” basis

430. What are Payments by FCBs + MDBs?

(i) FCBs + also MDBs “both” are required to make payments for purchase of dated securities through inward remittance from banking channel

Or

(ii) Through transfer from funds held in account opened with specific RBI’s approval

431. What are Payments by Other Non–Resident Investors?

• Ä Other non-residents investors are required to make payments for purchase in DIs through inward remittance from banking channel

(B) Sales of DIs by Non-RoI

432. What are Sales by Non-RoI?

• Ä Non-RoI are permitted to sale + to redeem DIs subject to satisfying conditions as may be specified by RBI + also by SEBI “all” from time to time when Non-RoI have purchased DIs in accordance with Schedule-I of DIs Regulations, 2019.

433. What are Payments to FPIs?

(i)  AD-Category-I Banks are permitted to remit outside India against sales proceeds + also maturity proceeds “both” after taxes

Or

(ii)  AD-Category-I Banks are permitted to credit to FCA account maintained in India against sales proceeds + also maturity proceeds “both” after taxes

Or

(iii) AD-Category-I Banks are permitted to credit to SNRR account maintained in India against sales proceeds + also maturity proceeds “both” after taxes

434. What are Payments to NRIs + OCIs?

(i)  AD-Category-I Banks are permitted to remit outside India against sales proceeds + also maturity proceeds “both” after taxes

Or

(ii)  AD-Category-I Banks are permitted to credit to NRO account maintained in India against sales proceeds + also maturity proceeds “both” after taxes when DIs were purchased on “non-repatriation” basis.

Or

(iii)  AD-Category-I Banks are permitted to credit to NRO account maintained in India against sales proceeds + also maturity proceeds ““both” after taxes when DIs were purchased out of funds from NRO account on “repatriation” basis.

Or

(iv)  AD-Category-I Banks are permitted to credit to NRE account maintained in India against sales proceeds + also maturity proceeds “both” after taxes when DIs were purchased on “repatriation” basis

Or

(v) AD-Category-I Banks are permitted to credit to FCNR account maintained in India against sales proceeds + also maturity proceeds “both” after taxes when DIs were purchased on “non-repatriation” basis

435. What are Payments to Other Non-RoI?

(i) AD-Category-I Banks are permitted to remit outside India against sales proceeds + also maturity proceeds “both” after taxes Or

(ii) AD-Category-I Banks are permitted to credit to account opened in India with specific RBI’s approval against sales proceeds + also maturity proceeds “both” after taxes

Ä Statistical data for FDIs inflow in India Ä

(Source for compilation https://dpiit.gov.in/publications/fdi-statistics)

436. What is FDIs from Apr 01, 2000 to March 31, 2025 (300 months)?

S.No	Particulars	Amount in INR	Amount in USD
(i)	Cumulative / Total FDI’s Inflow in India Ä FDIs are to include NDIs + re-invested earnings + also other capitals “all”	—-	1,072,340 Million
(ii)	Cumulative / Total FDI’s Inflow in India Ä FDIs are not to include remittances received through RBI NRIs’ schemes	47,68,930 Crore	7,28,882 Million

437. What is FDIs from Jan 01, 2025 to March 31, 2025 (3 months)?

S.No	Particulars	Amount in INR	Amount in USD
(i)	Cumulative / Total FDI’s Inflow in India Ä FDIs are to include NDIs + re-invested earnings + also other capitals “all”	—-	17,470 Million
(ii)	Cumulative / Total FDI’s Inflow in India Ä FDIs are not to include remittances received through RBI’s NRI’s schemes	80,967 Crore	9,346 Million

438. What is FDIs from Apr to March, 2025 (12 months)?

S.No	Particulars	Amount in INR	Amount in USD
(i)	April, 2024	40,950	4,910
(ii)	May, 2024	48,812	5,853
(iii)	June, 2024	45,196	5,415
(iv)	July, 2024	26,863	3,213
(v)	August, 2024	53,633	6,393
(vi)	September, 2024	33,578	4,006
(vii)	October, 2024	35,482	4,223
(viii)	November, 2024	19,278	2,285
(ix)	December, 2024	37,169	4,374
(x)	January, 2025	29,012	3,363
(xi)	February, 2025	24,645	2,831
(xii)	March, 2025	27,310	3,152
Total from April to March, 2025 (12 months) #		4,21,929	50,018
Total from April to March, 2024 (12 months) #		3,67,899	44,423
Percentage of growth in 2025 over 2024		15%	13%

# Figures are provided provisional which are to be reconciled with RBI, Mumbai.

439. What is Country wise FDI’s from Apr 01, 2000 to March 31, 2025 (300 months)?

S.No	Country’s name	INR in Crores & USD in Million	April, 22 to March 23 (12 months)	April, 23 to March 24 (12 months)	April, 24 to March 25 (12months)	Apr, 2000 to March, 2025 (300 months)	Percentage of total FDIs inflow in USD
(i)	Mauritius	INR in Crores	48,895	66,147	70,311	10,92,900
		USD in Million	6,134	7,970	8,344	180,191	25%
(ii)	Singapore	INR in Crores	1,37,374	97,475	1,26,234	12,18,108
		USD in Million	17,203	11,774	14,942	174,886	24%
(iii)	U.S.A.	INR in Crores	48,666	41,403	46,233	4,93,550
		USD in Million	6,044	4,998	5,457	70,650	10%
(iv)	Netherland	INR in Crores	19,855	40,733	38,806	3,62,988
		USD in Million	2,498	4,924	4,620	53,302	7%
(v)	Japan	INR in Crores	14,328	26,243	21,067	2,83,370
		USD in Million	1,798	3,177	2,478	44,396	6%
(vi)	United Kingdom	INR in Crores	13,994	10,061	6,753	2,10,049
		USD in Million	1,738	1,216	795	35,887	5%
(vii)	UAE	INR in Crores	26,315	24,262	36,504	1,67,725
		USD in Million	3,353	2,924	4,345	22,848	3%
(viii)	Cayman Islands	INR in Crores	6,069	2,835	3,126	1,11,040
		USD in Million	772	342	371	15,637	2%
(ix)	Germany	INR in Crores	4,417	4,181	3,973	91,847
		USD in Million	547	505	469	15,112	2%
(x)	Cyprus	INR in Crores	10,184	6,705	10,083	89,538
		USD in Million	1,277	806	1,203	14,653	2%
Total FDIs from 100% Countries		INR in Crores	3,67,435	3,67,899	4,21,929	47,68,930
		USD in Million	46,034	44,423	50,018	728,882

440. What are Clarifications for FDI’s?

(i) FDIs are not to include remittances received through RBI’s NRI’s schemes

(ii)  Percentages (%) are computed based on remittances received in USD “through” “automatic” route + “approval” route + also acquisition of existing shares “all”

(iii)  Figures are provided provisional which are to be reconciled with RBI,

441. What is Sector wise FDI’s from Apr 01, 2000 to March 31, 2025 (300 months)

S.No	Sector’s name	INR in Crores & USD in Million	April, 22 to March 23 (12 months)	April, 23 to March 24 (12 months)	April, 24 to March 25 (12 months)	Apr, 2000 to March 2025 (300 months)	Percentage of total FDIs inflow in USD
(i)	Services Sector	INR in Crores	69,852	54,894	78,880	7,65,759
		USD in Million	8,707	6,640	9,347	118.843	16%
(ii)	Computer Software & Hardware	INR in Crores	74,718	66,090	66,102	7,84,971
		USD in Million	9,394	7,973	7,814	110,698	15%
(iii)	Trading	INR in Crores	38,060	32,080	35,247	3,34,506
		USD in Million	4,792	3,865	4,176	47,572	7%
(iv)	Telecommunications	INR in Crores	5,469	2,318	6,251	2,41,091
		USD in Million	713	282	746	40,072	5%
(v)	Automobile Industry	INR in Crores	15,184	12,622	13,396	2,48,683
		USD in Million	1,902	1,524	1,586	37,854	5%
(vi)	Construction (Infrastructure) Activities	INR in Crores	13,588	35,076	18,962	2,58,516
		USD in Million	1,703	4,232	2,245	36,163	5%
(vii)	Construction Development: Townships, Housing, Built-Up Infrastructure and Construction-Development Projects	INR in Crores	1,196	2,113	4,503	1,35,824
		USD in Million	147	255	529	27,139	4%
(viii)	Drugs & Pharmaceuticals	INR in Crores	16,654	8,844	7,500	1,42,381
		USD in Million	2,058	1,064	891	23,419	3%
(ix)	Chemicals Other than Fertilizers	INR in Crores	14,662	6,985	8,942	1,42,646
		USD in Million	1,850	844	1,060	23,207	3%
(x)	Non-Conventional Energy	INR in Crores	19,977	31,188	33,797	1,59,959
		USD in Million	2,500	3,764	4,012	21,900	3%

442. What are Clarifications for FDI’s?

(i) Service sector is to include certain services like:

(a) Financial services

(b) Banking services

(c) Insurance services

(d) Non-Financial services

(e) Business services

(f) Outsourcing services

(g) R&D services

(h) Courier services

(i) Technical testing and analysis services

(j) Other services

(ii)  Percentages (%) are computed based on remittances received in USD “through” “automatic” route + “approval” route + also acquisition of existing shares “all”

(iii) Figures are provided provisional which are to be reconciled with RBI,

443. What is State wise FDI’s from Apr 01, 2000 to March 31, 2025 (300 months)

S.No	State’s name	INR in Crores & USD in Million	April, 22 to March 23 (12 months)	April, 23 to March 24 (12 months)	April, 24 to March 25 (12months)	Apr, 2000 to March, 2025 (300 months)	Percentage of total FDIs inflow in USD
(i)	Maharashtra	INR in Crores	1,18,422	1,25,101	1,64,875	6,97,304
		USD in Million	14,806	15,116	19,589	88,676	31%
(ii)	Karnataka	INR in Crores	83,628	54,427	56,030	4,45,513
		USD in Million	10,429	6,571	6,619	57,650	20%
(iii)	Gujarat	INR in Crores	37,059	60,600	47,947	3,47,572
		USD in Million	4,714	7,300	5,711	44,912	16%
(iv)	Delhi	INR in Crores	60,119	53,980	51,540	2,95,613
		USD in Million	7,534	6,523	6,091	37,807	13%
(v)	Tamil Nadu	INR in Crores	17,247	20,157	31,103	1,15,346
		USD in Million	2,169	2,436	3,681	14,619	5%
(vi)	Haryana	INR in Crores	20,735	15,797	26,600	1,01,869
		USD in Million	2,600	1,908	3,147	12,877	5%
(vii)	Telangana	INR in Crores	10,319	25,094	25,351	86,211
		USD in Million	1,303	3,029	2,994	10,768	4%
(viii)	Jharkhand	INR in Crores	44	90	61	19,443
		USD in Million	6	11	7	2,674	1%
(ix)	Rajasthan	INR in Crores	7,218	2,195	3,170	21,222
		USD in Million	910	265	374	2,718	1%
(x)	Uttar Pradesh	INR in Crores	3,373	2,762	3,700	16,316
		USD in Million	420	334	436	2,071	1%

444. What are Clarifications for FDI’s?

(i) Percentages (%) are computed based on remittances received in USD “through” “automatic” route + “approval” route + also acquisition of existing shares “all”

(ii)  Figures are provided provisional which are to be reconciled with RBI,

445. What is financial year wise FDI’s from Apr, 00 to March, 2025 (300 months)?

S. NO.	Financial Year	Automatic + Approval + Acquisition Routes	Capital in un-incorporated entities	Re-invested earnings	Other capital	Total FDIs	%age growth over previous year	Investment by FII’s (Net)
(i)	2000-01	2,339	61	1,350	279	4,029	–	1,847
(ii)	2001-02	3,904	191	1,645	390	6,130	(+) 52 %	1,505
(iii)	2002-03	2,574	190	1,833	438	5,035	(-) 18 %	377
(iv)	2003-04	2,197	32	1,460	633	4,322	(-) 14 %	10,918
(v)	2004-05	3,250	528	1,904	369	6,051	(+) 40 %	8,686
(vi)	2005-06	5,540	435	2,760	226	8,961	(+) 48 %	9,926
(vii)	2006-07	15,585	896	5,828	517	22,826	(+) 155 %	3,225
(viii)	2007-08	24,573	2,291	7,679	300	34,843	(+) 53 %	20,328
(ix)	2008-09	31,364	702	9,030	777	41,873	(+) 20 %	-15,017
(x)	2009-10	25,606	1,540	8,668	1,931	37,745	(-) 10 %	29,048
(xi)	2010-11	21,376	874	11,939	658	34,847	(-) 08 %	29,422
(xii)	2011-12	34,833	1,022	8,206	2,495	46,556	(+) 34 %	16,812
(xiii)	2012-13	21,825	1,059	9,880	1,534	34,298	(-) 26%	27,582
(xiv)	2013-14	24,299	975	8,978	1,794	36,046	(+) 5%	5,009
(xv)	2014-15	30,933	978	9,988	3,249	45,148	(+) 25%	40,923
(xvi)	2015-16	40,001	1,111	10,413	4,034	55,559	(+) 23%	-4,016
(xvii)	2016-17	43,478	1,223	12,343	3,176	60,220	(+) 8%	7,735
(xviii)	2017-18	44,857	664	12,542	2,911	60,974	(+) 1%	22,165
(xix)	2018-19	44,366	689	13,672	3,274	62,001	(+) 2%	-2,225
(xx)	2019-20	49,977	1,757	14,175	8,482	74,391	(+) 20%	552
(xxi)	2020-21	59,636	1,452	16,935	3,950	81,973	(+) 10%	38,725
(xxii)	2021-22	58,773	910	19,347	5,805	84,835	(+) 3%	-14,071
(xxiii)	2022-23	46,034	1,566	19,105	4,650	71,355	(-) 16%	-4,828
(xxiv)	2023-24	44,423	1,394	19,768	5,694	71,279	(-)0%	44,626
(xxv)	2024-25 up to March 25	50,018	976	23,545	6,505	81,043	(+) 14%	2,429
Total		731,761	23,516	252,993	64,071	1,072,340	–	281,683

446. What are Clarifications for FDI’s?

(i) Percentages (%) are computed based on remittances received in USD “through” “automatic” route + “approval” route + also acquisition of existing shares “all”

(ii) Inflow under acquisition of shares in March, 2011 + August, 2011 + also October, 2011 “all” are to include “net” FDIs for transfer of participating interest from Reliance Industries Ltd. to BP Exploration (Alpha).

(iii) Monthly data on components of FDIs are not available therefore these are not comparable with FDIs data for previous years.

(iv) Figures are provided provisional which are to be reconciled with RBI,

(v) Data for Re-invested earnings + also other capital “both” are estimated based on average of previous 2 years.

(vi) Data for capital of unincorporated bodies are estimated

447. What is financial year wise FDIs in Equity from Apr, 00 to March, 25 (300 months)?

S.No.	Financial Year	INR in Crores	USD in Million	%age growth over previous year in USD
(i)	2000-01	10,733	2,463	–
(ii)	2001-02	18,654	4,065	(+) 65 %
(iii)	2002-03	12,871	2,705	(-) 33 %
(iv)	2003-04	10,064	2,188	(-) 19 %
(v)	2004-05	14,653	3,219	(+) 47 %
(vi)	2005-06	24,584	5,540	(+) 72 %
(vii)	2006-07	56,390	12,492	(+) 125 %
(viii)	2007-08	98,642	24,575	(+) 97 %
(ix)	2008-09	1,42,829	31,396	(+) 28 %
(x)	2009-10	1,23,120	25,834	(-) 18 %
(xi)	2010-11	97,320	21,383	(-) 17 %
(xii)	2011-12	1,65,146	35,121	(+) 64 %
(xiii)	2012-13	1,21,907	22,423	(-) 36 %
(xiv)	2013-14	1,47,518	24,299	(+) 8%
(xv)	2014-15	1,81,682	29,737	(+) 22%
(xvi)	2015-16	2,62,322	40,001	(+) 35%
(xvii)	2016-17	2,91,696	43,478	(+) 9%
(xviii)	2017-18	2,88,889	44,857	(+) 3%
(xix)	2018-19	3,09,867	44,366	(-) 1%
(xx)	2019-20	3,53,557	49,977	(+) 13%
(xxi)	2020-21	4,42,569	59,636	(+) 19%
(xxii)	2021-22	4,37,188	58,773	(-) 1%
(xxiii)	2022-23	3,67,435	46,034	(-) 22%
(xxiv)	2023-24	3,67,899	44,423	(-)3%
(xxv)	2024-25 up to March-25	4,21,929	50,018	(+) 13%
Total		47,69,464	729,003

448. What are Clarifications for FDI’s in Equity?

(i) FDIs are to include remittances received through RBI NRIs’ schemes

(ii) FEDAI (Foreign Exchange Dealers Association of India) conversion rate from INR to USD is applied based on monthly average rate provided by RBI (DEPR).

449. What is Country wise FDIs in Equity from Apr, 00 to March, 25 (300 months)?

S.No.	Country’s name	INR in Crores	USD in Million	%age growth over previous year in USD
(i)	Mauritius	10,92,900.36	180,190.51	24.72
(ii)	Singapore	12,18,107.82	174,885.78	23.99
(iii)	U.S.A	4,93,549.78	70,650.48	9.69
(iv)	Netherland	3,62,988.17	53,302.34	7.31
(v)	Japan	283370.42	44,395.88	6.09
(vi)	United Kingdom	210048.63	35,886.71	4.92
(vii)	UAE	1,67,724.65	22,847.63	3.13
(viii)	Cayman Islands	1,11,040.23	15,637.46	2.15
(ix)	Germany	91,846.88	15,112.09	2.07
(x)	Cyprus	89,538.39	14,653.13	2.01
(xi)	France	75,777.41	11,753.09	1.61
(xii)	Switzerland	72,626.43	10,833.24	1.49
(xiii)	South Korea	45,550.44	6,685.38	0.92
(xiv)	Luxembourg	35,847.86	5,181.99	0.71
(xv)	Hong Kong	30,577.79	4,836.41	0.66
(xvi)	Spain	27,101.43	4,294.48	0.59
(xvii)	Canada	29,682.51	4,172.16	0.57
(xviii)	Belgium	28,638.73	4,023.55	0.55
(xix)	Italy	22,192.11	3,607.88	0.49
(xx)	Saudi Arabia	24,213.01	3,277.46	0.45
(xxi)	British Virginia	17,117.61	2,622.72	0.36
(xxii)	Sweden	16,489.07	2,603.69	0.36
(xxiii)	China	16,110.42	2,506.67	0.34
(xxiv)	Ireland	10,916.11	1,574.23	0.22
(xxv)	Australia	9,843.04	1,526.15	0.21
(xxvi)	Qatar	12,049.69	1,504.80	0.21
(xxvii)	Thailand	10,637.31	1,478.45	0.20
(xxviii)	Bermuda	9,014.52	1,422.11	0.20
(xxix)	Denmark	9,652.75	1,409.68	0.19
(xxx)	Russia	7,487.68	1,302.10	0.18
(xxxi)	Malaysia	7,737.54	1,272.30	0.17
(xxxii)	Taiwan	7,865.11	1082.62	0.15
(xxxiii)	Norway	6,938.54	931.88	0.13
(xxxiv)	Poland	4,198.98	740.18	0.10
(xxxv)	IFSC, India	6,149.18	735.24	0.10
(xxxvi)	Austria	4,412.45	675.89	0.09
(xxxvii)	Indonesia	3,177.21	659.30	0.09
(xxxviii)	South Africa	3,916.41	623.05	0.09
(xxxix)	Oman	3,399.43	605.57	0.08
(xl)	Virgin Islands (US)	3,975.12	581.93	0.08
(xli)	Finland	3,364.79	572.41	0.08
(xlii)	Philippines	3,864.77	547.52	0.08
(xliii)	Mexico	2,331.57	338.67	0.05
(xliv)	Israel	2,261.37	334.26	0.05
(xlv)	Guernsey	2,405.61	303.04	0.04
(xlvi)	Turkey	1,529.34	242.37	0.03
(xlvii)	Seychelles	1,339.51	217.81	0.03
(xlviii)	Bahrain	1,186.76	186.97	0.03
(xlix)	Chile	850.14	167.76	0.02
(l)	Jersey	1,226.60	148.76	0.02
(li)	Morocco	682.67	141.55	0.02
(lii)	Portugal	817.02	126.23	0.02
(liii)	Czech Republic	758.72	110.01	0.02
(liv)	Liechtenstein	751.68	105.93	0.01
(lv)	Sri Lanka	607.32	99.76	0.01
(lvi)	Panama	617.73	98.14	0.01
(lvii)	Kuwait	637.26	97.86	0.01
(lviii)	Samoa	665.39	90.64	0.01
(lix)	New Zealand	526.46	87.29	0.01
(lx)	West Indies	353.89	79.17	0.01
(lxi)	St Vincent	323.07	59.72	0.008
(lxii)	Bahamas	343.96	59.61	0.008
(lxiii)	Brazil	341.85	53.58	0.007
(lxiv)	Cambodia	354.55	50.48	0.007
(lxv)	Korea(North)	270.48	48.50	0.007
(lxvi)	Channel Islands	277.38	47.77	0.007
(lxvii)	Brunei Darussalam	298.7	39.10	0.005
(lxviii)	Vietnam	286.95	34.66	0.005
(lxix)	St Kitts & Nevis	148.86	33.67	0.005
(lxx)	Hungary	208.99	32.68	0.004
(lxxi)	Malta	210.54	32.39	0.004
(lxxii)	Jordan	179.21	32.04	0.004
(lxxiii)	Greece	240.16	31.45	0.004
(lxxiv)	Kenya	170.58	30.83	0.004
(lxxv)	Iceland	153.1	29.41	0.004
(lxxvi)	Belarus	164.39	29.18	0.004
(lxxvii)	Kazakhstan	142.53	27.29	0.004
(lxxviii)	Slovakia	157.61	24.18	0.003
(lxxix)	Gibraltar	103.84	22.41	0.003
(lxxx)	Slovenia	124	18.67	0.003
(lxxxi)	Nigeria	92.98	16.80	0.002
(lxxxii)	Mozambique	112.67	15.67	0.002
(lxxxiii)	Bulgaria	114.98	15.13	0.002
(lxxxiv)	Liberia	66.61	14.84	0.002
(lxxxv)	Romania	79.34	13.18	0.002
(lxxxvi)	Uganda	88.93	12.78	0.002
(lxxxvii)	Maldives	70.99	12.31	0.002
(lxxxviii)	Ukraine	81.02	11.90	0.002
(lxxxix)	Egypt	73.80	11.31	0.002
(xc)	Colombia	75.22	11.25	0.002
(xci)	Barbados	82.40	11.08	0.002
(xcii)	Argentina	47.65	10.36	0.001
(xciii)	Botswana	72.57	9.22	0.001
(xciv)	Marshall Islands	73.09	9.04	0.001
(xcv)	Myanmar	36.16	9.02	0.001
(xcvi)	Ghana	42.88	7.98	0.001
(xcvii)	Belize	39.35	7.54	0.001
(xcviii)	Nepal	48.65	6.93	0.001
(xcix)	East Africa	36.22	5.61	0.0008
(c)	Uruguay	28.28	5.49	0.0008
(ci)	Fiji Island	22.59	5.11	0.0007
(cii)	Monaco	33.05	5.05	0.0007
(ciii)	Tunisia	23.99	4.96	0.0007
(civ)	Azerbaijan	34.26	4.45	0.0006
(cv)	Estonia	28.28	4.15	0.0006
(cvi)	Georgia	30.51	3.91	0.0005
(cvii)	Tanzania	22.65	3.79	0.0005
(cviii)	Peru	27.17	3.77	0.0005
(cix)	Trinidad & Tobago	23.04	3.70	0.0005
(cx)	Lebanon	21.31	3.37	0.0005
(cxi)	Vanuatu	18.94	3.20	0.0004
(cxii)	St Lucia	21.85	3.16	0.0004
(cxiii)	West Africa	15.89	3.03	0.0004
(cxiv)	State of Palestine	21.77	2.71	0.0004
(cxv)	Afghanistan	17.41	2.57	0.0004
(cxvi)	Yemen	8.22	1.95	0.0003
(cxvii)	Lithuania	12.32	1.63	0.0002
(cxviii)	San Marino	9.43	1.52	0.0002
(cxix)	Latvia	10.71	1.39	0.0002
(cxx)	Tajikistan	8.98	1.37	0.0002
(cxxi)	Armenia	10.31	1.19	0.0002
(cxxii)	Malawi	8.40	1.17	0.0002
(cxxiii)	Cuba	4.73	1.04	0.0001
(cxxiv)	Iran	6.18	1.00	0.0001
(cxxv)	Guyana	4.60	1.00	0.0001
(cxxvi)	Togo Republic	5.07	0.92	0.0001
(cxxvii)	Algeria	5.50	0.79	0.0001
(cxxviii)	Jamaica	5.09	0.79	0.0001
(cxxix)	Croatia	4.22	0.77	0.0001
(cxxx)	Swaziland	6.09	0.74	0.0001
(cxxxi)	Congo (DR)	3.17	0.63	0.00009
(cxxxii)	Benin	4.39	0.55	0.00007
(cxxxiii)	Serbia	4.25	0.54	0.00007
(cxxxiv)	Anguilla	2.82	0.45	0.00006
(cxxxv)	Aruba	1.96	0.43	0.00006
(cxxxvi)	Zambia	2.19	0.36	0.00005
(cxxxvii)	Iraq	1.59	0.30	0.00004
(cxxxviii)	Vatican City	1.84	0.27	0.00004
(cxxxix)	GABON	1.99	0.26	0.00004
(cxl)	Honduras	1.77	0.25	0.00003
(cxli)	Yugoslavia	1.13	0.24	0.00003
(cxlii)	Suriname	1.30	0.21	0.00003
(cxliii)	Mauritania	1.19	0.16	0.00002
(cxliv)	Costa Rica	1.04	0.14	0.00002
(cxlv)	Sierra Leone	0.84	0.11	0.00001
(cxlvi)	Angola	0.70	0.09	0.00001
(cxlvii)	Cook Island	0.66	0.09	0.00001
(cxlviii)	Bangladesh	0.52	0.08	0.00001
(cxlix)	Zimbabwe	0.55	0.08	0.00001
(cl)	Turks and Caicos Islands	0.57	0.07	0.00001
(cli)	Libya	0.28	0.07	0.000009
(clii)	Mongolia	0.27	0.06	0.000008
(cliii)	Djibouti	0.40	0.05	0.000007
(cliv)	Sudan	0.25	0.05	0.000007
(clv)	Cote Divoire	0.30	0.05	0.000006
(clvi)	Moldova	0.25	0.03	0.000005
(clvii)	Cape Verde	0.10	0.01	0.000002
(clviii)	Puerto Rico	0.10	0.01	0.000002
(clix)	Niue Island	0.08	0.01	0.000002
(clx)	Venezuela	0.03	0.005	0.0000007
(clxi)	Ethiopia	0.04	0.005	0.0000007
(clxii)	Kyrgyzstan	0.02	0.003	0.0000004
(clxiii)	Dominican Rep	0.02	0.003	0.0000004
(clxiv)	Cameroon	0.01	0.003	0.0000004
(clxv)	Turkmenistan	0.02	0.002	0.0000003
(clxvi)	Bolivia	0.01	0.002	0.0000003
(clxvii)	Syria	0.01	0.002	0.0000002
(clxviii)	San Tome And Principe	0.01	0.001	0.0000002
(clxix)	Ecuador	0.009	0.001	0.0000002
(clxx)	Paraguay	0.005	0.0008	0.0000001
(clxxi)	Senegal	0.004	0.0006	0.00000008
(clxxii)	Macedonia	0.004	0.0005	0.00000007
(clxxiii)	Rwanda	0.003	0.0004	0.00000006
(clxxiv)	Mali Republic	0.0001	0.00001	0.000000002
(clxxv)	Country Details Awaited	30,982.65	6,980.16	0.96
(clxxvi)	FII’s	0.25	0.06	0.000009
(clxxvii)	NRI ***	20,383.66	4,684.25	0.64
Sub-Total		47,68,930.23	728,881.77
RBI’s-NRI Schemes (2000-2002)		533.06	121.33
Grand Total		47,69,463.29	7,29,003.10

450. What is Sector wise FDIs in Equity from Apr, 00 to March, 25 (300 months)?

S.No.	Sector’s name	INR in Crores	USD in Million	% age growth over previous year in USD
(i)	Services Sector (Fin. Banking, Insur., Non-Fin/business, Outsourcing, R&d, Courier, Tech. Testing and Analysis, Other)	7,65,758.71	118,843.31	16.3
(ii)	Computer Software & Hardware	7,84,971.19	110,698.11	15.19
(iii)	Trading	3,34,505.56	47,571.58	6.53
(iv)	Telecommunications	2,41,091.47	40,072.02	5.5
(v)	Automobile Industry	2,48,682.50	37,854.44	5.19
(vi)	Construction (Infrastructure) Activities	2,58,516.13	36,162.57	4.96
(vii)	Construction Development: Townships, Housing, Built-up Infrastructure and Construction-development Projects	1,35,823.85	27,139.24	3.72
(viii)	Drugs & Pharmaceuticals	1,42,380.55	23,419.41	3.21
(ix)	Chemicals (Other Than Fertilizers)	1,42,647.58	23,206.87	3.18
(x)	Non-conventional Energy	1,59,958.81	21,899.56	3
(xi)	Power	1,20,986.33	19,715.21	2.7
(xii)	Hotel & Tourism	1,17,787.92	18,533.62	2.54
(xiii)	Metallurgical Industries	1,13,539.95	18,470.79	2.53
(xiv)	Electrical Equipment	86,488.02	13,175.72	1.81
(xv)	Food Processing Industries	86,824.30	13,128.29	1.8
(xvi)	Hospital & Diagnostic Centers	82,348.30	11,824.08	1.62
(xvii)	Information & Broadcasting (including Print Media)	75,590.84	11,705.45	1.61
(xviii)	Consultancy Services	69,962.23	10,305.70	1.41
(xix)	Education	72,210.33	9,979.35	1.37
(xx)	Petroleum & Natural Gas	43,906.76	8,216.05	1.13
(xxi)	Cement And Gypsum Products	51,130.16	7,919.97	1.09
(xxii)	Industrial Machinery	46,590.06	7,369.67	1.01
(xxiii)	Sea Transport	49,715.08	6,876.73	0.94
(xxiv)	Electronics	44,496.07	6,621.54	0.91
(xxv)	Air Transport (including Air Freight)	37,633.02	5,207.65	0.71
(xxvi)	Retail Trading	35,058.04	4,839.18	0.66
(xxvii)	Textiles (including Dyed, printed)	30,479.81	4,727.56	0.65
(xxviii)	Fermentation Industries	27,063.50	4,653.67	0.64
(xxix)	Miscellaneous Mechanical & Engineering	29,176.45	4,549.76	0.62
(xxx)	Medical and Surgical Appliances	27,458.82	3,913.48	0.54
(xxxi)	Rubber Goods	23,492.56	3,718.19	0.51
(xxxii)	Mining	21,541.11	3,510.99	0.48
(xxxiii)	Prime Mover (Other Than Electrical	20,338.56	3,131.33	0.43
(xxxiv)	Agriculture Services	18,947.59	3,119.47	0.43
(xxxv)	Printing of Books (including Litho Printing	17,851.32	2,578.67	0.35
(xxxvi)	Soaps, Cosmetics & Toilet Preparations	16,540.49	2,525.74	0.35
(xxxvii)	Agricultural Machinery	12,297.57	1,747.15	0.24
(xxxviii)	Paper And Pulp (including Paper Products)	10,159.90	1,744.37	0.24
(xxxix)	Ports	6,730.91	1,637.30	0.22
(xl)	Railway Related Components	8,964.20	1,434.23	0.2
(xli)	Diamond, Gold Ornaments	9,162.61	1,429.05	0.2
(xlii)	Glass	9,134.71	1,390.79	0.19
(xliii)	Machine Tools	7,854.90	1,292.95	0.18
(xliv)	Vegetable Oils and Vanaspati	7,339.91	1,166.94	0.16
(xlv)	Ceramics	5,908.80	1,047.02	0.14
(xlvi)	Fertilizers	4,315.74	739.4	0.1
(xlvii)	Earth-moving Machinery	4,194.64	647.7	0.09
(xlviii)	Scientific Instruments	3,720.78	530.23	0.07
(xlix)	Commercial, Office & Household Equip.	2,854.29	493.05	0.07
(l)	Boilers And Steam Generating Plants	2,339.53	377.07	0.05
(li)	Leather, Leather Goods and Pickers	2,317.46	346.61	0.05
(lii)	Tea And Coffee (Processing & Ware-housing	1,870.47	283.84	0.04
(liii)	Timber Products	1,822.53	276.01	0.04
(liv)	Glue And Gelatin	1,804.78	252.49	0.03
(lv)	Sugar	1,550.36	249.23	0.03
(lvi)	Dye-stuffs	635.83	105.2	0.01
(lvii)	Industrial Instruments	462.64	89.58	0.01
(lviii)	Photographic Raw Film and Paper	273.76	67.29	0.009
(lix)	Coal Production	119.19	27.73	0.004
(lx)	Défense Industries	154.7	21.74	0.003
(lxi)	Mathematical, Surveying and Drawing	39.8	7.98	0.001
(lxii)	Coir	22.05	4.07	0.0006
(lxiii)	Miscellaneous Industries	81,384.19	14,287.76	1.96
Sub-total		47,68,930.23	728,881.77
RBI’s-NRI Schemes (2000-2002)		533.06	121.33
Grand Total		47,69,463.29	729,003.1

451.  What is State wise FDIs in Equity from Apr, 00 to March, 25 (300 months)?

S.No.	State’s name	INR in Crores	USD in Million	% age growth over previous year in USD
(i)	Maharashtra	6,97,303.95	88,675.52	31.36
(ii)	Karnataka	4,45,513.36	57,649.98	20.39
(iii)	Gujarat	3,47,571.60	44,912.44	15.88
(iv)	Delhi	2,95,613.48	37,807.30	13.37
(v)	Tamil Nadu	1,15,345.80	14,619.34	5.17
(vi)	Haryana	1,01,869.21	12,877.13	4.55
(vii)	Telangana	86,211.27	10,768.04	3.81
(viii)	Jharkhand	21,222.35	2,718.21	0.96
(ix)	Rajasthan	19,443.21	2,674.15	0.95
(x)	Uttar Pradesh	16,315.55	2,070.80	0.73
(xi)	West Bengal	14,932.58	1,908.05	0.67
(xii)	Kerala	10,882.19	1,375.19	0.49
(xiii)	Punjab	9,376.63	1,231.72	0.44
(xiv)	Andhra Pradesh	8,765.24	1,121.27	0.4
(xv)	Madhya Pradesh	4,653.22	613.1	0.22
(xvi)	Himachal Pradesh	2,882.27	362.97	0.13
(xvii)	Uttarakhand	1,728.91	221.84	0.08
(xviii)	Bihar	1,650.05	215.82	0.08
(xix)	Goa	1,517.75	196.79	0.07
(xx)	Dadra And Nagar Haveli and Daman and Diu	1,343.44	179.29	0.06
(xxi)	Odisha	1,315.84	173.21	0.06
(xxii)	Chandigarh	1138.27	135.15	0.05
(xxiii)	Chhattisgarh	895.91	114.44	0.04
(xxiv)	Puducherry	574.86	75.98	0.03
(xxv)	Assam	179.67	23.73	0.008
(xxvi)	Arunachal Pradesh	53.25	7.03	0.002
(xxvii)	Jammu And Kashmir	10.43	1.33	0.0005
(xxviii)	Tripura	9.75	1.23	0.0004
(xxix)	Meghalaya	9.08	1.20	0.0004
(xxx)	Ladakh	1.70	0.22	0.00008
(xxxi)	Nagaland	0.51	0.06	0.00002
(xxxii)	Manipur	0.01	0.0006	0.0000002
(xxxiii)	State Not Indicated	246.69	32.93	0.01
Gross-Total		22,08,578.02	282,765.45

Note: State wise data is maintained w.e.f. October, 2019

452. What are RTI’s Provisions for DPIIT?

(i) Department for Promotion of Industry and Internal Trade (DPIIT) has implemented Right to Information (RTI) Act, 2005 from Oct 12, 2005 / since its inception.

(ii) (a) DPIIT has dedicated RTI Cell for receiving RTI Applications/Appeals

(b) For forwarding same to concerned Central Public Information Officers (CPIOs)

(c) For transferring to other concerned Public Authorities.

(iii) (a) DPIIT’s RTI Section is required to keep records for 100% RTI’s applications/ appeals received

(b) To monitor for applications / appeals’ timely disposal.

453. What are Officers responsible for providing information’s under RTI?

(i) 100% Director/Deputy Secretary level officers are designated as CPIOs under Section 5(1) of RTI Act, 2005 for providing information’s / documents to citizens of India.

(ii) 100% Joint Secretary/Additional Secretary level officers are designated as First Appellate Authorities (FAAs) for addressing appeals filed by Appellant under Section 19 of RTI Act, 2005.

454. What are Statistical data for RTI?

(i) DPIIT has provided required information on Website http://dipp.nic.in under suo-motu disclosure on proactive basis.

(ii) 100% items required to publish in public domain proactively under Section 4 (1) (b) of RTI Act, 2005 are uploaded on website + also being updated on regular basis “both”.

(iii) Statistical data for 100% RTI’s applications/appeals received up to Dec 31, 2024 are as under:

S.No	Period	No. of RTI’s Applications	No. of First Appeals
(a)	1st Quarter From April 01 to June 30, 2024	347	28
(b)	2nd Quarter From July 01 to Sep 30, 2024	351	29
(c)	3rd Quarter From Oct 01 to Dec 31, 2024	328	29
Total		1026	86

What is Chart for Secretary DPIIT?

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(Author can be reached at email address satishagarwal307@yahoo.com or on Mobile No. 9811081957)

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