FDI policy

Basic of FDI or Foreign Investment under NDI Rules

Fema / RBI - Till 16th October, 2019, Foreign Investment was governed, by RBI in consultation with Central Government, by Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017, called as TISPRO. Pursuant to amendment made in FEMA through Finance Act 2015, Central Government is empowered to mak...

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Prior govt approval needed for FDI from countries sharing land border with India

Fema / RBI - Even the minute investment from countries sharing land border with India shall require prior approval from government…??? Impact on Indian Economy. It is expected that the government will soon issue more stringent guidelines w.r.t investment from countries sharing land border with India. Amid Covid-19 and rising tensions at the India-Ch...

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Can A Foreign National Start A Business In India Without Being A Resident?

Fema / RBI - A Foreign National can start a business in India without being a Resident and one can setup up a new business in India in any of the following ways: A. Limited Company (Private Limited/Public Limited Company) B. Limited Liability Partnership (LLP) C. Branch Office or Liaison/Representative Office, Project Office A. LIMITED COMPANY A non-r...

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India Takes Step to Smooth Progress of FDI in Defense Sector

Fema / RBI - Indian regulators have proposed relaxing restrictions for certain foreign direct investments (FDIs) in Indian domestic defense companies to promote investment in India and boost domestic manufacturing in the defense industry. The government of India on September 17, 2020, formally proposed to increase the permitted ownership by non-Indian...

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Legal Framework of Investment in India

Fema / RBI - The following are the various legal entities vide which business can be started in India 1. INDIAN COMPANY The following are the models to set up business as an Indian company- Joint Venture Wholly Owned Subsidiary N.B. :- The JV/Wholly Owned Subsidiary is set up as (i) Private Limited or (ii) Public Limited Company, as […]...

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Ministry of I&B requests compliance of policy on FDI in digital media within a month

Fema / RBI - Union Ministry of Information and Broadcasting has today issued a public notice to facilitate eligible entities involved in uploading/streaming of news and current affairs through digital media, to comply with the decision of Union Government on 18th September 2019, which had permitted 26% FDI under Government approval route....

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Promotion of FDI

Fema / RBI - FDI policy is an enabling policy which is uniformly applicable in the country across all scales of industries including small and medium enterprises....

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Shifting of Base to India by MNCs

Fema / RBI - Several multinational companies have evinced their interest to shift their base into India across different States in sectors such as Electronics, Retail, e-Commerce, Automotive, Food Processing, Textiles etc. ...

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Checklist of documents to be submitted for FDI approval

Fema / RBI - Checklist for documents to be submitted at concerned authorities for FDI approval 1. Certificate of Incorporation of the Investee & Investor Companies/Entities* (Investee company may be a proposed entity and may not be incorporated) 2. Memorandum of Association (MOA) of the Investee & Investor Companies/Entities* 3. Board Resoluti...

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Cabinet permit Foreign Investment in Air India Ltd by NRIs

Fema / RBI - Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to amend the extant FDI Policy to permit Foreign Investment (s) in M/s Air India Ltd by NRIs, who are Indian Nationals, upto to 100% under automatic route....

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Standard Operating Procedure for Processing FDI Proposals

F. No. 1/8/2016-FDI Policy - (09/11/2020) - Upon receipt of the FDI application, the concerned Administrative Ministry/Department shall process the application as per the Standard Operating Procedure (SOP). If the online filing of application is with digital signature by authorised signatory, physical submission of the copy is not required. F...

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Consolidated FDI Policy (Effective From October 15, 2020)

DPIIT File Number 5(2)/2020-FDI Policy - (15/10/2020) - Department for Promotion of Industry and Internal Trade Ministry of Commerce and Industry Government of India Consolidated FDI Policy (Effective from October 15, 2020) Government of India Ministry of Commerce Sr Industry Department for Promotion of Industry and Internal Trade (FDI Division) Consolid...

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Govt approves amendment in FDI Policy on Defence Sector

Press Note No. 4 (2020 Series) / DPIIT File No.: 5(8)/ 2020-FDI Policy - (17/09/2020) - Press Note No. 4 (2020 Series), reviewing Foreign Direct Investment (FDI) Policy in Defence Sector Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has issued Press Note No. 4 (2020 Series), reviewing Foreign Direct Investment (FDI) Policy in Defence...

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Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2020

[F. No. 01/05/EM/2019-Part (1)] [S.O. 1278 (E)] - (22/04/2020) - Provided that an entity of a country, which shares land border with India or the beneficial owner of an investment into India who is situated in or is a citizen of any such country, shall invest only with the Government approval:...

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Govt restricts FDI from Countries with which India share Land Border

Press Note No. 03 (2020 Series) - (17/04/2020) - A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such coun...

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Recent Posts in "FDI policy"

Standard Operating Procedure for Processing FDI Proposals

F. No. 1/8/2016-FDI Policy (09/11/2020)

Upon receipt of the FDI application, the concerned Administrative Ministry/Department shall process the application as per the Standard Operating Procedure (SOP). If the online filing of application is with digital signature by authorised signatory, physical submission of the copy is not required. For applications without digital signatur...

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Ministry of I&B requests compliance of policy on FDI in digital media within a month

Union Ministry of Information and Broadcasting has today issued a public notice to facilitate eligible entities involved in uploading/streaming of news and current affairs through digital media, to comply with the decision of Union Government on 18th September 2019, which had permitted 26% FDI under Government approval route....

Read More
Posted Under: Fema / RBI |

Basic of FDI or Foreign Investment under NDI Rules

Till 16th October, 2019, Foreign Investment was governed, by RBI in consultation with Central Government, by Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017, called as TISPRO. Pursuant to amendment made in FEMA through Finance Act 2015, Central Government is empowered to mak...

Read More
Posted Under: Fema / RBI |

Prior govt approval needed for FDI from countries sharing land border with India

Even the minute investment from countries sharing land border with India shall require prior approval from government…??? Impact on Indian Economy. It is expected that the government will soon issue more stringent guidelines w.r.t investment from countries sharing land border with India. Amid Covid-19 and rising tensions at the India-Ch...

Read More
Posted Under: Fema / RBI |

Can A Foreign National Start A Business In India Without Being A Resident?

A Foreign National can start a business in India without being a Resident and one can setup up a new business in India in any of the following ways: A. Limited Company (Private Limited/Public Limited Company) B. Limited Liability Partnership (LLP) C. Branch Office or Liaison/Representative Office, Project Office A. LIMITED COMPANY A non-r...

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Posted Under: Fema / RBI |

Consolidated FDI Policy (Effective From October 15, 2020)

DPIIT File Number 5(2)/2020-FDI Policy (15/10/2020)

Department for Promotion of Industry and Internal Trade Ministry of Commerce and Industry Government of India Consolidated FDI Policy (Effective from October 15, 2020) Government of India Ministry of Commerce Sr Industry Department for Promotion of Industry and Internal Trade (FDI Division) Consolidated FDI Policy Circular of 2020 Subject...

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India Takes Step to Smooth Progress of FDI in Defense Sector

Indian regulators have proposed relaxing restrictions for certain foreign direct investments (FDIs) in Indian domestic defense companies to promote investment in India and boost domestic manufacturing in the defense industry. The government of India on September 17, 2020, formally proposed to increase the permitted ownership by non-Indian...

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Posted Under: Fema / RBI |

Promotion of FDI

FDI policy is an enabling policy which is uniformly applicable in the country across all scales of industries including small and medium enterprises....

Read More
Posted Under: Fema / RBI |

Shifting of Base to India by MNCs

Several multinational companies have evinced their interest to shift their base into India across different States in sectors such as Electronics, Retail, e-Commerce, Automotive, Food Processing, Textiles etc. ...

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Posted Under: Fema / RBI |

Govt approves amendment in FDI Policy on Defence Sector

Press Note No. 4 (2020 Series) / DPIIT File No.: 5(8)/ 2020-FDI Policy (17/09/2020)

Press Note No. 4 (2020 Series), reviewing Foreign Direct Investment (FDI) Policy in Defence Sector Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has issued Press Note No. 4 (2020 Series), reviewing Foreign Direct Investment (FDI) Policy in Defence Sector. The decision will take effect f...

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Checklist of documents to be submitted for FDI approval

Checklist for documents to be submitted at concerned authorities for FDI approval 1. Certificate of Incorporation of the Investee & Investor Companies/Entities* (Investee company may be a proposed entity and may not be incorporated) 2. Memorandum of Association (MOA) of the Investee & Investor Companies/Entities* 3. Board Resoluti...

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Posted Under: Fema / RBI |

Legal Framework of Investment in India

The following are the various legal entities vide which business can be started in India 1. INDIAN COMPANY The following are the models to set up business as an Indian company- Joint Venture Wholly Owned Subsidiary N.B. :- The JV/Wholly Owned Subsidiary is set up as (i) Private Limited or (ii) Public Limited Company, as […]...

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Posted Under: Fema / RBI |

Foreign Investment Approval Route: You Can Make It!!!

DIPP issues standard operating procedures to decide fate of FDI under approval route -System of approving foreign investment proposals in India by an inter-ministerial body is now officially replaced with approval by distinct administrative ministries / departments in accordance with the standard operating procedure issued by DIPP. -Forei...

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Posted Under: Fema / RBI |

FDI in Startup Companies & Issue of Convertible Notes

Article explains FDI IN STARTUP COMPANIES. It explains General Meaning of Start-up, Legal Meaning of Start-up, Types of Instruments Issued by Start-ups, Convertible Note which can be issued by a start-up. Article further explains conditions to comply for Issue Of Convertible Notes To Person Resident Outside India, Eligible Person For Maki...

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Posted Under: Fema / RBI |

FDI in E-commerce 

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It is not only a form of business but more a mode of earning of livelihood for tens of millions of people in the Country. India’s e-commerce market has witnessed a phenomenal growth […]...

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Posted Under: Fema / RBI |

Sneak peek into India’s latest FDI policy-COVID-19 highlights grey areas!

Sneak peek into india’s latest fdi policy Unanticipated outbreak of the global pandemic and nationwide- lockdown caused by the Novel Coronavirus (COVID-19) has jeopardized individuals and economy as a whole. In order to abate the impact on the general public, business establishments, and managing the current situations, the Governm...

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Posted Under: Fema / RBI |

Amendments in FDI policy and FEMA due to COVID-19

Foreign equity investments in an Indian company are bound by the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (‘Rules’) and Foreign Direct Investment (‘FDI’) policy issued by the Ministry of Finance and Ministry of Commerce and Industry respectively (together referred as ‘Government’). As per the said Rules, ...

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Posted Under: Fema / RBI |

India tweaks FDI policy to curtail opportunistic acquisition of firms in midst of COVID-19

In a press note gave on April 17, the Department for Promotion of Industry and Internal Trade (DPIIT) has said the modification of the FDI strategy is intended to control ‘artful takeovers/acquisitions of Indian organizations because of the current COVID-19 pandemic’. The way that the amendment is explicitly intended to hav...

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Posted Under: Fema / RBI |

A Knight in Shining Armor against Opportunist Takeover OR Capitulation for Growth

The Government of India revised the Foreign Investment Policy foreseeing the threat of opportunistic takeovers due to the COVID-19. Knight Shield against Opportunist Takeover, 'a non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited....

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Posted Under: Fema / RBI |

Decoding FDI and FPI from Neighbouring Countries of India

On April 17, 2020, Department for Promotion of Industry and Internal Trade came up with an amendment in Foreign Direct Investment Policy, 2017 vide Press Release No. 3 (2020 Series) in order to shield the corporates from hostile acquisitions which may arise due to downward trend in the share prices of the Company. The experts […]...

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Posted Under: Fema / RBI |

Setting up subsidiary outside India

With the advent of Globalization, more and more Indian companies are interested in doing business outside India. They want to set-up a branch office or a subsidiary abroad. There are multiple benefits of doing so such as cost reduction because they save on import duty, ease of doing business, building an international brand etc. Overseas ...

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Posted Under: Fema / RBI |

Foreign Exchange Management (Non-debt Instruments) Amendment Rules, 2020

[F. No. 01/05/EM/2019-Part (1)] [S.O. 1278 (E)] (22/04/2020)

Provided that an entity of a country, which shares land border with India or the beneficial owner of an investment into India who is situated in or is a citizen of any such country, shall invest only with the Government approval:...

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Right move to protect interest of Indian firms through FDI restrictions

Right move to protect interest of Indian firms and their stakeholders through FDI restrictions by GoI The constantly increasing Covid-19 pandemic has cast a shadow on the Indian and as well as global economy, which was already reeling under pressure by the US-China trade war. This shock comes at a particularly unfortunate time for India, ...

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Posted Under: Fema / RBI |

Foreign Investment from China to fall under Government Route?

The Indian Government has always taken steps towards promoting foreign investor interests’ in the Indian businesses. Past initiatives such as Make in India, Start-Up India programs are live examples of attracting foreign investors to the Indian business market....

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Posted Under: Fema / RBI |

FDI Rules amended to curb opportunistic takeovers of Indian Companies

Government of India changes FDI Rules to curb opportunistic takeovers of Indian Companies. Change in Foreign Direct Investment (FDI) policy for curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic During the ongoing global pandemic of COVID—19, stock markets across the world had crashed. ...

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Posted Under: Fema / RBI |

Govt restricts FDI from Countries with which India share Land Border

Press Note No. 03 (2020 Series) (17/04/2020)

A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Governmen...

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Foreign Direct Investment (FDI) in Proprietorship/ Partnership Firms

For a country where capital is not readily available, Foreign Direct Investment (FDI) has been an important source of funds for companies. Under FDI, overseas money, either by an individual or entity, is invested in an Indian company. Moreover, FDI in India is now a boom since the Government of India has opened up the […]...

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Posted Under: Fema / RBI |

Foreign Direct Investment in Limited Liability partnerships (FDI in LLPs)

Limited Liability Partnership are the best way other than companies where the investment made can be withdrawn by the Designated Partners/Investors which had been invested by them as Capital Contribution or by way of withdrawal of Profits. Since, in companies the capital contribution can be withdrawn by way of bye back of shares or by [&h...

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Posted Under: Fema / RBI |

LLPs and FDI in India

The concept of LLP, introduced in India through the Limited Liability Partnership Act, 2008 has become a popular form of business entity in India owing to its simplified procedures for registration and maintenance. LLPs allow many of the small and medium-sized to enjoy a separate legal entity, improve transferability and provide its promo...

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Posted Under: Fema / RBI |

Extension of dates under FTP / FTA

Referring to our News Update in relation to measures under discussion with Commerce Ministry on account of COVID-19 pandemic, Director General of Foreign Trade has issued various Notifications, Trade Notices and Public Notices to address relief / extension of validity of various schemes and applicability of Foreign Trade Policy beyond 31 ...

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Posted Under: Fema / RBI |

FDI in Information Technology sector

Indian IT industry is one of the fastest growing industries in the country. It comprises of software industry and information technology enabled services (ITes), which even includes business process outsourcing (BPO) industry. It is considered as a pioneer in software development and a leading destination for IT- enabled services. Indian ...

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Posted Under: Fema / RBI |

Cabinet permit Foreign Investment in Air India Ltd by NRIs

Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to amend the extant FDI Policy to permit Foreign Investment (s) in M/s Air India Ltd by NRIs, who are Indian Nationals, upto to 100% under automatic route....

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Posted Under: Fema / RBI |

18 recent changes related to FEMA and FDI Policy

Foreign Direct Investment (FDI) means any investment made by a person resident outside India on a repatriable basis in capital instruments of an Indian company or to the capital of an LLP. FDI means investment through capital instruments (equity shares, debentures, preference shares and share warrants) by a person resident outside India i...

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Posted Under: Fema / RBI |

FDI in Defence Sector in India

Defence Industry in India is subject to Industrial License under the Industries (Development & Regulation) Act, 1951 and manufacture of small arms and ammunition under the Arms Act, 1959. The detailed guidelines in this regard may be seen under the Press Note available at www.dipp.nic.in followed by link Acts & Rules. Previously,...

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Posted Under: Fema / RBI |

Review of FDI policy on Coal & Lignite, Contract Manufacturing, Single Brand Retail Trading, Digital Media

Press Note No. 4 (2019 Series) (18/09/2019)

DPPI has reviewed Foreign Direct Investment (FDI) policy Coal & Lignite, Contract Manufacturing, Single Brand Retail Trading, Digital Media sector vide Press Note No. 4 (2019 Series). Government of India Ministry of Commerce & Industry Department for Promotion of Industry and Internal Trade FDI Policy Section Press Note No. 4 (201...

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Withdrawal of Press Note No. 17 (1984 Series)

Press Note No. 3 (2019 Series) (11/09/2019)

The Press Note No. 17 (1984) series regarding Environmental clearance of Industrial Licence- conditions of Letter of Intent/Industrial Licence, relates to pre-1991 period. After the Industrial Policy Resolution 1991, and considering various amendments made to Notification No. 477(E) dated 25th July, 1991 only the following four Industrie...

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Licensing requirement for Parts and Accessories in Defence Sector

Press Note No. 2 (2019 Series) (11/09/2019)

In reference to Press Note 1 (2019 Series) dated January 1, 2019 it is hereby clarified that No Industrial Licence/Arms Licence is required for the manufacture of any parts or accessories in Defence Sector, unless they are specifically listed in any of the Annexures of the said Press Note....

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FDI in Telecom Services sector

Telecommunications is one of the fastest growing industries in India that has undergone an innovative phase over the past few years and stands as the second largest telecommunications market in the world after China. It is due to liberalization policy that telecom sector could attract more FDI flows in private sector participation increas...

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Posted Under: Fema / RBI | ,

Reporting of Foreign Direct Investment in India

Foreign Direct Investment (FDI) has been an important source of funds for companies in a country where capital is scarcely available. Under FDI, overseas money, either by an individual or entity, is invested in an Indian company. Modes of FDI Investment in India can be made either under Automatic Route which does not require approval fro...

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Posted Under: Fema / RBI |

FDI in Construction Development sector in India

The Construction/ Real Estate sector is one of the most critical sectors of the Indian economy due to its huge multiplier effect on the economy. Any impact on the Real Estate sector has a direct bearing on economic growth. Due to the well-acknowledged need for foreign investments into this sector because of the sheer demand, […]...

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Posted Under: Fema / RBI | ,

FDI in Retail Trading sector in India

The retail sector in India is one of the biggest contributors to the economy in terms of revenue and contributes about 10% towards its GDP. It provides the second highest rate of employment after agriculture. The retail sales in India are growing at a compounded annual rate of 15% since the year 2014....

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Understanding Brexit and Its impact on India

Q.1 What does Brexit mean? Ans: It is a shorthand way of saying the UK leaving the EU – merging the words Britain and Exit to get Brexit. Q.2 What is the European Union? Ans: ♣ The European Union (EU) – is an economic and political partnership involving 28 European countries. It began after World War […]...

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Posted Under: Fema / RBI |

FDI related filing requirements

What is Foreign Direct Investment(FDI)? A Foreign Direct Investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. Some of the concepts covered under FDI are discussed below : A. Form Foreign Currency-Gross Provisional Return (FCGPR): In accordance with Not...

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Posted Under: Fema / RBI |

Guidelines for Single Brand Retail Trade 

FDI policy on Single Brand Retail Trade(SBRT) has been in operation since 2006. From 2006 till 29.03.2018, 112 brands have obtained approval of Government for SBRT activities....

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Posted Under: Fema / RBI |

Salient features of FDI in Multi Brand Retail Trading

Salient features of FDI in Multi Brand Retail Trading (MBRT) MBRT means sale of different products of different brands through one platform. FDI in MBRT in all products is permitted upto 51% with Government approval and will require amongst others, compliance with the following: 1. Minimum Investment: Minimum amount to be brought in as FD...

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Posted Under: Fema / RBI |

FAQs on Overseas Direct Investments

Q. 1 Where are the guidelines pertaining to overseas direct investments available and how to get clarifications pertaining to the guidelines on overseas investment? Ans: The guidelines have been notified by the Reserve Bank of India vide Notification No. FEMA 120/RB-2004 dated July 7, 2004, as amended from time to time, which can be acces...

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Posted Under: Fema / RBI | ,

FDI in LLP

There are many questions which arise in our mind in relation to FDI in LLP such as: -Who are the Eligible Investors? -What are the Eligible Investments? -Are all LLPs eligible for FDI? -How the investors will transfer the funds in the LLP and how the valuation will be done? -Last but not least, Reporting […]...

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Posted Under: Fema / RBI |

Convertible Notes in India: Raising fund from Foreign Investors

Govt. of India issued Consolidated FDI Policy in 2017. The thrust of the policy is to make India an attractive investment destination for foreign investors. A key feature of these policy announcements has been to boost fundraising options for home-grown startups by permitting startups to raise funds through issuance of Convertible Notes w...

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Posted Under: Fema / RBI |

Labour Audit Documents

BRIEF LIST OF DOCUMENTS under Shop and Establishment Act, The Contract Labour (Regulation And Abolition) Act 1970 – Central Act, The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 – Central Act, The Equal Remuneration Act, 1976, The Maternity Benefit Act 1961 – Central Act, The Minimum Wages Act ...

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Posted Under: Fema / RBI |

FDI in Small Scale Industrial Undertakings & Micro & Small Enterprises

Foreign Direct Investment in Small Scale Industrial Undertakings (SSI) and Micro and Small Enterprises (MSE) In terms of the Schedule 1, an Indian company which is a small scale industrial unit and which is not engaged in any activity or in manufacture of items included in Annex A (List of activities or items for which […]...

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Posted Under: Fema / RBI |

Foreign Direct Investment (FDI) Concept & Roadmap

Introduction Foreign direct investment (FDI) in India is a major monetary source for economic development in India. Apart from being a critical driver of economic growth, foreign direct investment (FDI) is a major source of non-debt financial resource for the economic development of India. Foreign companies invest in India to take advanta...

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Posted Under: Fema / RBI |

Effects of Recent Changes in FDI in e-commerce

E-commerce activities are allowed to have a 100% FDI through automatic route. Subject to provisions of FDI Policy, e-commerce entities would engage only in Business to Business (B2B) e-commerce and not in Business to Consumer (B2C) e-commerce....

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Posted Under: Fema / RBI |

Conditions in Certain Cases for Issue of Capital Instruments in FDI

Streamlining of Issue of shares through Rights Issue and Bonus Issue The NEW FDI Regulations have streamlined the issue of shares under the right issue and bonus issue subject to adherence: 1. The offer made by the Indian company is in compliance with the provisions of the Companies Act, 2013 2. Such issue shall not […]...

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Posted Under: Fema / RBI |

Type of Instruments in FDI & its Conditions

An Indian company is permitted to receive foreign investment by issuing capital instruments to the investor. The capital instruments are equity shares, debentures, preference shares and share warrants issued by the Indian company. Equity shares: Equity shares are those issued in accordance with the provisions of the Companies Act, 2013 an...

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Posted Under: Fema / RBI |

An Introduction to the Foreign Direct Investment Policy

Foreign Direct Investment (FDI) means investment by non-resident entity/person outside India in the capital of an Indian company under Schedule 1 of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000. Foreign (Direct) investment was introduced under Foreign Exchange Management ...

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Posted Under: Fema / RBI |

FDI Policy on E-Commerce effective from February 01, 2019

The e-commerce sector is expected to keep growing in future because of a number of reasons. The FDI policy on e-commerce has remained unchanged. Better enforcement of this policy will contribute significantly to growth of this sector over medium and long term....

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Posted Under: Fema / RBI |

DIPP clarifies on FDI policy on e-commerce after recent media reports

FDI policy on e-commerce, first pronounced through Press Note 2 of 2000, permitted 100% FDI in B2B e-commerce With a view to clarify the already existing policy framework, after extensive stakeholder consultations, Press Note 3 was issued by DIPP in 2016. B2C e-commerce, that is multi-brand retail through inventory based model, has all al...

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Posted Under: Fema / RBI |

A Spark of Hope for Domestic Traditional Shopkeepers

Government has come up with new guidelines for e-commerce companies doing business in India.  These guidelines seem to help in favor of Domestic Traditional Shopkeepers and may cause some difficulties to the e-commerce companies particularly which are receiving foreign investment into their entity.  As an impact of the new guideline sma...

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Posted Under: Fema / RBI |

New FDI guidelines for e-commerce companies doing business in India

Press Note No. 2 (2018 Series) (26/12/2018)

Review of the policy on Foreign Direct Investment (FDI) in e-commerce- e-commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only....

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Foreign Direct Investment In Limited Liability Partnerships

LLP exhibits element of both partnerships and companies. As the name suggests, partners of the LLP have limited liability which means that personal assets of the partners are not used for paying off the debts of the LLP....

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Posted Under: Fema / RBI |

Sectoral Caps for FDI in INDIA

A foreign company can start its business operations in India by incorporating a company under the Companies Act, 2013 through either a Joint Venture (JV) or forming a Wholly Owned Subsidiary (WOS). Foreign equity in such Indian companies can be up to 100%, subject to Sectoral equity caps under the FDI policy. The Sectoral caps […]...

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Posted Under: Fema / RBI |

Compliances for FDI in India (RBI and Companies Act, 2013)

Compliance For Issuance Of Shares Under FDI In India: A. Compliance under Master Directions issued by RBI: 1. On receipt of payment from outside India, an Advance Remittance Form (ARF) is required to be filed online (www.ebiz.gov.in) within 30 days intimating RBI about receipt of money for such purpose alongwith KYC and FIRC received from...

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Posted Under: Fema / RBI |

What is Joint Venture and Joint venture Agreement?

A joint venture is generally understood as technical and financial collaboration for the purpose of some projects fulfillment with existing companies. Companies lacking in some aspects such as technology, knowledge, assets or reach to the market are generally involved in joint ventures with other company because they are not able to achie...

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Posted Under: Fema / RBI |

Central Bank Watch: Preparing for a hike

Abheek Barua* We have argued “Hike the interest rate now“, 1st June, 2018) that the current macroeconomic situation warrants a policy rate hike. Rising and more dispersed core inflation, the immediate and possible second-round effects of the fuel price increases and the pressure on the rupee; all call for a 25 basis point hike...

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Posted Under: Fema / RBI |

FDI and Multi Brand Retailing

Foreign Direct Investment is the most effective and efficient source of funding for Companies seeking leverage of funds from across the border. As FDI has broaden the horizons of fund raising for Companies it also involves a number of compliances with respect to Central Government, Ministry of Finance, Reserve Bank of India (RBI), Departm...

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Posted Under: Fema / RBI |

FDI Policy Amendment as on 23.01.2018

Para 5.2 (h) of FDI Policy is replaced with the following: Wherever the foreign investor wishes to specify a particular auditor/audit firm having international network for the Indian investee company, then audit of such investee companies should be carried out as joint audit wherein one of the auditors should not be part of the same netwo...

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Posted Under: Fema / RBI |

Summary of Foreign Trade Policy Statement 2017- Mid-Term Review

The Foreign Trade Policy Statement explains the vision, goals and objectives underpinning the Foreign Trade Policy for the period 2015-2020, as updated through the mid-term review completed in December 2017. Keeping in the backdrop the global trade developments, it describes the market and product strategy, and the other measures required...

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Posted Under: Fema / RBI |

Consolidated FDI Policy Circular of 2017- Effective from August 28, 2017

D/o IPP F. No. 5(1)/2017-FC-1 (28/08/2017)

Consolidated FDI Policy Circular of 2017 Effective from August 28, 2017- It is the intent and objective of the Government of India to attract and promote foreign direct investment in order to supplement domestic capital, technology and skills, for accelerated economic growth. Foreign Direct Investment, as distinguished from portfolio inve...

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Standard Operating Procedure for FDI in India

The Finance Minister in his budget speech for FY 2017-18 had included a significant proposal of abolishing the Foreign Investment Promotion Board (FIPB) and replace it with a decentralized mechanism at the respective ministry level to examine and approve FDI proposals in India....

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Posted Under: Fema / RBI |

Which one is better “Company or LLP” In case FDI Comes or Overseas Shareholder?

While allowing FDI in LLP, the Government of India, has taken a very precautionary approach by only allowing FDI under approval route in sectors where 100% FDI is allowed, under the automatic route and there are no FDI-linked performance related conditions, for example sectors like power, roads, information technology, manufacturing etc ....

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Posted Under: Fema / RBI |

Cabinet approves phasing out FIPB

With FIPB getting abolished, it is expected that foreign investment proposals will be considered by the concerned ministry in consultation with the DIPP. Towards this end it is hoped that DIPP comes out with clear guidelines and operating procedures defining the parameters that should be considered for clearance of proposals. This would i...

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Posted Under: Fema / RBI |

‘Foreign Direct Investment Inflows- A Success Story’

The Government in last three years has undertaken a number of reforms in different areas of economy. In this regard FDI policy reforms carried out by Government are nothing less than historic. ...

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Posted Under: Fema / RBI |

Connecting India!

A few weeks ago, Akash Jain, a young entrepreneur from Bengaluru, tweeted the Swachh Bharat logo printed on his sister’s wedding card and became the toast of mainstream media. ...

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Posted Under: Fema / RBI |

FDI in trading of Food Products

Ministry of Food Processing Industries has held three meetings on 17.03.2016, 03.08.2016 and 27.02.2017 with Ambassadors and High Commissioners in India of various foreign countries namely Australia, China, Canada, France, Indonesia, Japan, Korea, Netherland, Poland, Russia, Singapore, UK, New Zealand, UAE, Thailand, Germany, Belgium, Bra...

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Posted Under: Fema / RBI |

Amendment in foreign investment policy in Indian Stock Exchanges

Press Note No. 1 (2017 Series) (20/02/2017)

Infrastructure companies in Securities Markets, namely, stock exchanges, commodity exchanges, corporations, Regulations depositories and clearing in compliance with SEBI...

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Consolidated FDI Policy Circular 2017- Invite comments from stakeholders

Comments/ suggestions on 'Consolidated Foreign Direct Investment Policy Circular of 2016' are invited from stakeholders by 27/01/2017 for consideration....

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Posted Under: Fema / RBI |

Procedure for FDI Under Government Route

Under Government Route, prior approval of Govt of India is required. Proposals for foreign investment under this route are considered by FIPB...

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Posted Under: Fema / RBI |

‘Make in India-Power Sector Achievement Report’

The power sector in India has witnessed a major addition in capacity in the last 2 years, making India the fifth largest installed capacity in the world. As of October 2016, the installed power capacity was 307.28 GW. Private capacity generation has increased to 124 GW in FY2015- 16, which constitutes 41% of the total power generated in t...

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Posted Under: Fema / RBI | ,

Make in India-Mining Sector Achievement Report

India is blessed with abundant mineral deposits and the countrys mining sector forms an important segment of the economy contributing around 2.6% to the countrys GVA (FY 2015- 16(PE).1 India produces 90 different types of minerals (fuel, atomic, metallic and non-metallic minerals). ...

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Posted Under: Fema / RBI |

Make in India ‘Telecommunication Sector’- Achievement Report

The Indian telecommunications sector shaped by consumer demand, innovation and competitive forces offers tremendous growth opportunities. With the second largest subscriber base in the world with 1.06 billon connections (including fixed phone lines), the telecom industry is booming....

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Posted Under: Fema / RBI |

Make in India ‘Textile & Apparel’ Sector’- Achievement Report

The Indian textile industry exhibits rich cultural heritage of India with wide variety of fabrics, techniques and hues that reflect the diverse set of people and traditions across the country. One of the oldest industries in India, it covers an extensive spectrum of segments, from hand woven/hand-spun, unorganized segment on one end to ca...

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Posted Under: Fema / RBI |

14 Recent steps by Government to boost foreign investments

Government has put in place a liberal, transparent and investor-friendly policy on Foreign Direct Investment (FDI) wherein most of the sectors are open to FDI under the automatic route. ...

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Posted Under: Fema / RBI |

RBI permits 49% FDI under automatic route in Pension Sector

The policy makers are determined to attract foreign investment through Foreign Direct Investment (FDI) and continue to revisit sectoral caps and mode of investment in various sectors of the economy. ...

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Posted Under: Fema / RBI |

RBI amends FEMA regulations to allow 100% FDI in ARCs

Govt permitted FDI up to 100% subject to certain conditions (up to 49% under Automatic route and under Government route beyond 49%) in Asset Reconstruction Companies (ARCs)....

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Posted Under: Fema / RBI |

Amendment in FDI Policy on Other Financial Services

Press Note No. 6 (2016 Series) (09/10/2016)

Foreign investment in 'Other Financial Services' activities shall be subject to conditionalities, including minimum capitalization norms, as specified by the concerned Regulator/Government Agency....

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Foreign investment in Other Financial Services

RBI/2016-17/90 A.P. (DIR Series) Circular No. 8 (20/10/2016)

On a review, in consultation with the Government of India, it has been decided to allow foreign investment up to 100% under the automatic route in ‘Other Financial Services’....

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Cabinet approves simplification and liberalisation of FDI Policy, 2016

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its ex-post-facto approval for the FDI policy amendments announced by the Government on 20th June, 2016. The FDI policy amendments are meant to liberalise and simplify the FDI policy so as to provide ease of doing business in the country leading to larger FDI inf...

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Posted Under: Fema / RBI |

Cabinet increases limit for foreign investment in Stock Exchanges to 15%

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for raising foreign shareholding limit from 5% to 15% in Indian Stock Exchanges for a stock exchange, a depository, a banking company, an insurance company, a commodity derivative exchange. ...

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Posted Under: Fema / RBI |

Revamping FDI Policy continues..

Seems the continuing foreign tours taken up by the Prime Minister of our country is indeed resulting in tremendous international alliances for the country. One of the main focus areas of such international tie-ups and alliances is Foreign Direct Investment (FDI)....

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Posted Under: Fema / RBI |

List of Cabinet Ministers of Modi Government with Portfolio

The President of India, as advised by the Prime Minister, has directed the allocation of portfolios among the following members of the Union Council of Ministers:-...

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Posted Under: Fema / RBI |

Review of FDI policy on various sectors

Press Note No. 5 (2016 Series) (24/06/2016)

The Government of India has reviewed the extant FDI policy on various sectors and made following amendments in the Consolidated FDI Policy Circular of 2016 issued on June 07, 2016 (FDI Policy)....

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Analysis of General Condition of Foreign Direct Investment (FDI)

Company/ Trust/ Partnership: A Company, trust and partnership firm incorporated outside India and owned and controlled by NRIs can invest in India with the special dispensation as available to NRIs under the FDI Policy....

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Posted Under: Fema / RBI |

Radical changes in FDI policy; Most sectors on automatic route

Government has decided to introduce a number of amendments in the FDI Policy. Changes introduced in the policy include increase in sectoral caps, bringing more activities under automatic route and easing of conditionalities for foreign investment. ...

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Posted Under: Fema / RBI |

Consolidated FDI Policy- a comparative analysis

Like every year, the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry had released the Consolidated Foreign Direct Investment Policy Circular, 2016 (FDI Policy 2016) which took effect from June 7, 2016. Several amendments were made in various sectors vide Press Note No. 12 dated November 24, 2015. FDI ...

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Posted Under: Fema / RBI |

Consolidated FDI Policy Circular of 2016 wef June 07, 2016

Circular No. D/o IPP F. No. 5(1)/2016-FC-1 (07/06/2016)

Press Information Officer, Press Information Bureau- for giving wide publicity to the above circular. 2. NIC, DIPP for uploading the Circular on DIPP's website. 3. Department of Economic Affairs, Ministry of Finance, New Delhi....

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Policy on foreign investment for Asset Reconstruction Companies

Press Note No. 4(2016 Series) (06/05/2016)

(i) Persons resident outside India can invest in the capital of Asset Reconstruction Companies (ARCs) registered with Reserve Bank, up to 49% on the automatic route, and beyond 49% on the Government route. (ii) No sponsor may hold more than 50% of the shareholding in an ARC either by way of FDI or by routing it through an FII/FPI control...

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Indian Economy Amid Turmoils & the Road Ahead

India is a unique place having great diversity. It is probably the only nation in the world which contains within itself the greatness, civilizations and cultures of the ancient’s era as well as the wonders of the modern time....

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Posted Under: Fema / RBI |

Guidelines for Foreign Direct Investment (FDI) on E-commerce

Press Note No 3 (2016 Series) (29/03/2016)

As per the FDI policy, contained in the `Consolidated FDI Policy Circular 2015' (FDI Policy) as amended from time to time, FDI up to 100% under automatic route is permitted in Business to Business (B2B) e-commerce. No FDI is permitted in Business to Consumer (B2C) e-commerce. However, FDI in B2C e-commerce is permitted in following ci...

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Indian Insurance Companies Foreign Investment Amendment Rules, 2016

Notification No. G.S.R. 314(E) [F. No. 12018/1/2006-Ins.IV] (16/03/2016)

The Foreign Investment proposals up to forty-nine per cent of the total paid up equity of the Indian Insurance Company shall be allowed on the automatic route subject to verification by the Insurance Regulatory and Development Authority of India...

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