FOREIGN DIRECT INVESTMENT / FOREIGN PORTFOLIO INVESTMENT

A. FOREIGN DIRECT INVESTMENT IN INDIA
The Government of India permits 100% FDI on an automatic basis, except with respect to a small negative list. In certain specific sectors, investment caps for FDI have been prescribed. In those cases which are covered by automatic approval route, only the Reserve Bank of India is required to be intimated within a specified period of time from the date of issue of shares to foreign shareholders. Proposals for foreign investment, which are not covered under the automatic approval route, are considered for approval, by the Government of India.

Our Strategy & Investment Advisory Team comprises of professionals who have wide and extensive experience in structuring India investment strategy for many corporates and in advising and assisting on various matters in connection therewith. Our range of services includes :

 
  • Advising on methods & strategies to be adopted in those sectors where investment caps have been prescribed to protect the interests of foreign enterprise
  • Structuring the investment in India in the most tax efficient manner after considering benefits available under domestic tax laws and also the benefits under various Tax treaties in order to ensure tax minimization on a global basis
  • Negotiate with various State Governments for obtainment of maximum benefit when large foreign investment is envisaged
  • Obtainment of clearance from the Foreign Investment Promotion Board and Reserve Bank of India, where necessary
  • Advising on the various compliance procedures under relevant laws, rules and regulations including industry specific legal issues
B. FOREIGN PORTFOLIO INVESTMENT IN INDIA
Foreign Institutional Investors (FIIs) can make portfolio investments. FIIs are allowed to invest in the primary and secondary capital markets in India under the Portfolio Investment Scheme (PIS). The term FII is defined as an institution established or incorporated outside India for making investment in Indian securities and also includes a sub-account of an FII. FIIs must register themselves with the Securities and Exchange Board of India (SEBI) and comply with the exchange control regulations of RBI. Foreign pension funds, mutual funds, investment trusts, asset management companies, nominee companies and incorporated/institutional portfolio managers or their power of attorney holders are allowed to invest in India as FIIs. They may invest in securities traded in both the primary and secondary markets. These securities include shares, debentures, warrants, and units of mutual funds, government securities and derivative instruments. Various investment limits have been prescribed under RBI Regulations for FII investment in various instruments. Minimum investment limit in equity and equity related instruments has been prescribed in respect of FIIs registered as non-debt funds.

Our Strategy & Investment Advisory Team comprises of professionals who have wide and extensive experience in structuring India investment strategy for many corporates and in advising and assisting on various matters in connection therewith. Our range of services includes:

 
  • Structuring the investment in India in the most tax efficient manner after considering benefits available under domestic tax laws and also the benefits under various Tax treaties in order to ensure tax minimization on a global basis
  • Obtaining registration from Securities & Exchange Board of India
  • Obtainment of clearance from the Reserve Bank of India, where necessary
  • Advising on hedging strategy in respect of foreign exchange exposure
  • Advising on the various compliance procedures under relevant laws, rules and regulations
 
   
   
 
 

Copyright® 2005 Indiabizsolutions

Disclaimer