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Foreign Investment Approval

Foreign investment in India is primarily governed by the FDI policy formulated by the secretariat for industrial assistance (SIA), the Department of Industrial policy and promotion (DIPP), the foreign investment promotion board (FIPB) and foreign exchange regulations, which are governed by the RBI. Under the present policies and regulations, foreign investment in India is possible through the following avenues:

  • AsFDI;
  • By FIIs, directly, via the Portfolio investment scheme (PIS);
  • By NRIs/persons of Indian origin (PIO), directly and indirectly, via the PIS;
  • By qualified foreign investors, via the PIs; and
  • By foreign venture capital investors (FVCIs)

Automatic Route

Under the automatic route, no prior regulatory approval is required from either the RBI or FIPB. Under this route, investors are required to notify the concerned regional office of the RBI within 30 days of receiving investment money in India and to file the required documents and details of the shares allotted, with the same regional office, within 30 days of issuing such shares to the respective foreign investors.

Approval/Government route

FDI in business sectors not covered under the automatic route requires prior approval from the Government of India. Applications for foreign investments that need prior governmental approval are required to be submitted to the FIPB.

In case you are looking to invest in India, kindly take note that Foreign investment in India in certain business sectors requires prior approval from the Government of India. Further with effect from April 22, 2020, in case you are a citizen of or the investing entity is incorporated in, countries like China, Bangladesh, Pakistan, Nepal, Afghanistan, Bhutan and Myanmar, then approval of Government of India will be required, irrespective of the business sector in which you want to invest.

We can help you in understanding the foreign investment regulatory framework in India. Our experienced and professional team can represent you before the Government of India and can help in filing necessary applications for obtaining approval for making foreign investment in India.

 
     
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