Doing Business in India - RSM Austria
Doing Business in India - RSM Austria
Doing Business in India - RSM Austria
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Foreign Investment <strong>in</strong> <strong>India</strong>-Schematic Representation:<br />
Foreign Investments<br />
Foreign Direct<br />
Investments<br />
Foreign Portfolio<br />
Investments<br />
Foreign Venture<br />
Capital<br />
<strong>in</strong>vestments<br />
Other Investments<br />
(G-sec, NCDs etc.)<br />
Investment on<br />
non-repatriable<br />
basis<br />
Automatic<br />
Route<br />
Govt.<br />
Route<br />
Persons<br />
Resident<br />
Outside <strong>India</strong><br />
Flls<br />
NRIs,<br />
PIO<br />
SEBI regd.<br />
FVCIs<br />
Flls<br />
NRIs,<br />
PIO<br />
NRIs,<br />
PIO<br />
VCF,<br />
IVCUs<br />
2.2 Investment <strong>in</strong> <strong>India</strong> by a person resident outside <strong>India</strong> /<br />
Eligibility for <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>India</strong><br />
2.2.1 A person resident outside <strong>India</strong> (other than a citizen of Pakistan) or an entity<br />
<strong>in</strong>corporated outside <strong>India</strong>, (other than an entity <strong>in</strong>corporated <strong>in</strong> Pakistan) can<br />
<strong>in</strong>vest <strong>in</strong> <strong>India</strong>, subject to the FDI Policy of the Government of <strong>India</strong>. A person who is<br />
a citizen of Bangladesh or an entity <strong>in</strong>corporated <strong>in</strong> Bangladesh can <strong>in</strong>vest <strong>in</strong> <strong>India</strong><br />
under the FDI Scheme, with prior approval of FIPB.<br />
NRIs, resident <strong>in</strong> Nepal and Bhutan as well as citizens of Nepal and Bhutan are<br />
permitted to <strong>in</strong>vest <strong>in</strong> shares and convertible debentures of <strong>India</strong>n companies under<br />
FDI Scheme on repatriation basis, subject to the condition that the amount of<br />
consideration for such <strong>in</strong>vestment shall be paid only by way of <strong>in</strong>ward remittance <strong>in</strong><br />
free foreign exchange through normal bank<strong>in</strong>g channels.<br />
2.2.2 Overseas Corporate Body (OCB) means a company, partnership firm, society and<br />
other corporate body owned directly or <strong>in</strong>directly to the extent of at least 60% by<br />
Non-Resident <strong>India</strong>ns and <strong>in</strong>cludes overseas trust <strong>in</strong> which not less than 60%<br />
beneficial <strong>in</strong>terest is held by Non-resident <strong>India</strong>ns, directly or <strong>in</strong>directly, but<br />
irrevocably. OCBs have been de-recognised as a class of <strong>in</strong>vestors <strong>in</strong> <strong>India</strong> with<br />
effect from 16 September 2003. Erstwhile OCBs which are <strong>in</strong>corporated outside<br />
<strong>India</strong> and are not under adverse notice of Reserve Bank can make fresh <strong>in</strong>vestments<br />
under the FDI scheme as <strong>in</strong>corporated non-resident entities, with the prior approval<br />
of Government of <strong>India</strong> if the <strong>in</strong>vestment is through Government Route; and with the<br />
prior approval of Reserve Bank if the <strong>in</strong>vestment is through Automatic Route.<br />
DOING BUSINESS IN INDIA 59
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