Foreign Direct Investment (FDI) in India

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What is FDI?

  • Foreign Direct Investment (FDI) denotes an investment by a person resident outside india in an unlisted Indian company or a listed Indian Company (to the extent of at least ten percent of the post-issue paid-up equity capital).The key distinction between FDI and Foreign Portfolio Investment lies in the percentage stake held by the foreign investor. Foreign Portfolio Investment involves an investment of less than ten percent of the post-issue paid-up share capital of a listed Indian company.

Investment Options:

  • Subscription to MoA
  • Mergers/Demergers/Amalgamations/Restructuring
  • Preferential Allotment & Private Placement
  • Share Purchases
  • Rights & Bonus Issues
  • Convertible Notes
  • Capital Swap Deals

Sector-Specific Guidelines

  • Foreign investment in different sectors or activities is subject to applicable laws or regulations, security and other conditionalities. Please refer Consolidated FDI Policy issued by DPIIT (Link: https://dpiit.gov.in/) for latest information pertaining to the sectors.

Choose Your Route:

  • Automatic Route: No prior RBI or Government approval required.
  • Government Route: Investments with pre-approval through the Foreign Investment Facilitation Portal (FIFP).

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  • Indian companies receiving foreign investments are required to fulfil reporting requirement through Foreign Investment Reporting and Management System (FIRMS) portal. Various Forms such as FC-GPR, FC-TRS, LLP-I, LLP-II, CN, ESOP, DRR, DI and InVi are required for different types of investments.
  • The reporting process involves steps, like updating of the Entity Master Form, Business User Registration and filling of SMF on the FIRMS portal within specific time lines.
  • Please refer User Manual for Entity Users and User Manual for Business User for understanding/guidance of stepwise procedure for filing of forms on the FIRMS portal (https://firms.rbi.org.in/firms/faces/pages/login.xhtml ).

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  • Fast, Reliable, and Hassle-Free Processing
  • Centralized FDI Desk for Expert Support
  • Your Partner in Regulatory Compliance

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Disclaimer:

  • The content mentioned above is for information only and is in conjunction with the relevant notifications/directions issued under FEMA/ NDI Rules/FEMA 395. For more details, please refer respective regulatory publication as amended from time to time.