Foreign direct investment in India's real estate sector increased 80 times between 2005 and 2010 after India fully opened to foreign investment in real estate in 2005. The document outlines the guidelines for foreign direct investment in real estate projects in India, including the minimum investment amounts, timelines for completion, and sectors that are permitted for full foreign ownership like townships, housing, and built-up infrastructure. It also discusses rules for investment by non-resident Indians and foreign nationals.
Company law- foreign venture capital investor Divyansh Sharma
This document provides an overview of foreign venture capital investments in India. It defines key terms like foreign venture capital investor (FVCI), venture capital funds (VCF), and Indian venture capital undertakings (IVCU). It explains that an FVCI must register with SEBI and RBI before making investments in India. An FVCI can invest up to 100% of its funds in a VCF and must invest at least 66.67% of its funds in unlisted equity of IVCUs. It outlines the general obligations of an FVCI and notes that income of a registered FVCI is exempt from income tax under Indian law.
This document summarizes the rules for acquisition and transfer of securities by non-residents in India. It outlines various scenarios for the transfer of capital instruments of an Indian company between residents and non-residents, including transfers by NRIs, OCIs, overseas corporate bodies, and residents. It specifies the applicable entry routes, sectoral caps, pricing guidelines, and documentation requirements for such transfers. The document also provides definitions for key terms like non-resident Indian, overseas citizen of India, and capital instruments.
Acquisition & Transfer of Immovable Property by NRI /OCI FEMA & Income Tax Im...DVSResearchFoundatio
OBJECTIVE:
Get a comprehensive understanding of the income tax implications on Joint Developments Agreements under the provisions of Income Tax Act. Further dwell upon the rules pertaining to FDI on Real Estate Sector under FEMA.
Capital account transaction is defined as a transaction whichDwara Balaji
Capital account transactions are defined as transactions that alter the assets or liabilities of residents in or outside of India. This includes residents acquiring overseas assets or taking on foreign liabilities, as well as non-residents acquiring Indian assets or taking on liabilities in India. The Reserve Bank of India specifies permissible capital account transactions and limits on foreign exchange withdrawals for such transactions in consultation with the Central Government, except for loan repayments or investment depreciation in the ordinary course of business.
Objectives & Agenda :
The Regulations under FEMA regulate a transaction based on whether the transaction is a 'Capital Account Transaction' or a 'Current Account Transaction'. In this Webinar we shall understand the Definition of the terms 'Capital Account Transactions' and 'Current Account Transactions'. We will also look at various transactions covered and the limits applicable to such transactions.
How to make outbound investment from india financing & complianceRamanuj Mukherjee
There are several options and procedures for Indian companies to make outbound investments. Under the automatic route, investments of up to 400% of net worth are permitted without approval. Companies can also use proceeds from ADR/GDR issuances. For investments outside these routes, approval must be obtained from authorities including the RBI. The document outlines financing options, compliance procedures, and regulations according to the Companies Act, FEMA, and SEBI.
History of Outbound Investment & Rationale
Liberalization and the rationalization
Automatic Route of Overseas Investment
Approval Route
Eligible Entities for Investment
Other modes of Investment
Post Approval Compliance
Disinvestment / Pledge etc.
Factors Affecting Overseas Investment
Company law- foreign venture capital investor Divyansh Sharma
This document provides an overview of foreign venture capital investments in India. It defines key terms like foreign venture capital investor (FVCI), venture capital funds (VCF), and Indian venture capital undertakings (IVCU). It explains that an FVCI must register with SEBI and RBI before making investments in India. An FVCI can invest up to 100% of its funds in a VCF and must invest at least 66.67% of its funds in unlisted equity of IVCUs. It outlines the general obligations of an FVCI and notes that income of a registered FVCI is exempt from income tax under Indian law.
This document summarizes the rules for acquisition and transfer of securities by non-residents in India. It outlines various scenarios for the transfer of capital instruments of an Indian company between residents and non-residents, including transfers by NRIs, OCIs, overseas corporate bodies, and residents. It specifies the applicable entry routes, sectoral caps, pricing guidelines, and documentation requirements for such transfers. The document also provides definitions for key terms like non-resident Indian, overseas citizen of India, and capital instruments.
Acquisition & Transfer of Immovable Property by NRI /OCI FEMA & Income Tax Im...DVSResearchFoundatio
OBJECTIVE:
Get a comprehensive understanding of the income tax implications on Joint Developments Agreements under the provisions of Income Tax Act. Further dwell upon the rules pertaining to FDI on Real Estate Sector under FEMA.
Capital account transaction is defined as a transaction whichDwara Balaji
Capital account transactions are defined as transactions that alter the assets or liabilities of residents in or outside of India. This includes residents acquiring overseas assets or taking on foreign liabilities, as well as non-residents acquiring Indian assets or taking on liabilities in India. The Reserve Bank of India specifies permissible capital account transactions and limits on foreign exchange withdrawals for such transactions in consultation with the Central Government, except for loan repayments or investment depreciation in the ordinary course of business.
Objectives & Agenda :
The Regulations under FEMA regulate a transaction based on whether the transaction is a 'Capital Account Transaction' or a 'Current Account Transaction'. In this Webinar we shall understand the Definition of the terms 'Capital Account Transactions' and 'Current Account Transactions'. We will also look at various transactions covered and the limits applicable to such transactions.
How to make outbound investment from india financing & complianceRamanuj Mukherjee
There are several options and procedures for Indian companies to make outbound investments. Under the automatic route, investments of up to 400% of net worth are permitted without approval. Companies can also use proceeds from ADR/GDR issuances. For investments outside these routes, approval must be obtained from authorities including the RBI. The document outlines financing options, compliance procedures, and regulations according to the Companies Act, FEMA, and SEBI.
History of Outbound Investment & Rationale
Liberalization and the rationalization
Automatic Route of Overseas Investment
Approval Route
Eligible Entities for Investment
Other modes of Investment
Post Approval Compliance
Disinvestment / Pledge etc.
Factors Affecting Overseas Investment
Returning NRIs face important tax and regulatory considerations when returning to India permanently. As residents, their global income and assets will be subject to Indian laws. NRIs have preferential tax status for some years if they have lived abroad for long periods. They can retain foreign investments but must convert foreign bank accounts to Indian resident status. Comprehensive financial and tax planning is needed to smoothly transition an NRI's financial affairs to Indian regulatory compliance.
The document summarizes key changes to foreign exchange laws in India regarding foreign direct investment in Limited Liability Partnerships (LLPs). It outlines eligibility requirements for foreign investors and LLPs to receive foreign investment, including that the LLP must operate in a sector that allows 100% foreign ownership. It also details pricing requirements, payment methods, reporting obligations, restrictions on downstream investments, and other conditions like ECB restrictions. Foreign investment in LLPs now requires prior government or Foreign Investment Promotion Board approval.
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
Investment in real estate sector in indiatapask7889
This document discusses investment opportunities for foreigners in India's real estate and housing sector. There are two main routes for investment - the direct route which allows Non-Resident Indians to invest up to 100% in projects, and the alternate route which requires Reserve Bank of India approval for foreign investors to purchase between 51-74% equity in an Indian company developing real estate projects. The alternate route has fewer restrictions on minimum investment amounts but requires RBI approval for financial transactions. Real estate development in India is considered high risk but also high return, with significant growth expected over the next 10-15 years.
Presentation on investment and taxation of NRI - Special privileges Sanjay Agrawal
The document discusses various definitions and concepts related to NRIs under FEMA and Income Tax Act including:
- Definitions of NRI, PIO, OCI, PRI, PROI under FEMA and their meanings.
- Legal framework of FEMA governing NRI investments including relevant regulations.
- Definitions of person, resident, non-resident under Income Tax Act and their tax treatment.
- Special privileges and exemptions available to NRIs under the Income Tax Act for various types of incomes like salary, house property, capital gains etc. as well as relief under double taxation avoidance agreements.
Presentation on Fema by CA. Sudha G. Bhushan [balance sheet and fema]TAXPERT PROFESSIONALS
The document discusses regulations related to balance sheets, foreign exchange management, and international transactions per the Companies Act, Income Tax Act, and Foreign Exchange Management Act of India. Key points include:
1. Balance sheets must provide a true and fair view of the company's financial position and comply with Schedule VI of the Companies Act.
2. The Income Tax Act contains several sections related to computing income from international transactions and reporting requirements.
3. FEMA regulates foreign exchange transactions and capital/current account transactions, requiring certain approvals and documentation for foreign investment, borrowings, remittances abroad, and other financial activities involving foreign exchange.
Key Takeaways:
Analysing the provisions of Sec 6
Recent budget amendments of Finance Act, 2020
Residency provisions under DTAA
Illustrations and Judicial Precedents
Establishing foreign branches abroad by indian companyVineeth T
Setting up a branch office abroad involves several steps and requirements. An Indian company can establish a branch office outside India to conduct normal business activities. The key steps include obtaining board approval, appointing an authorized representative, opening a bank account, and filing required forms and applications with the RBI through an Authorized Dealer along with supporting documents. The branch office must promptly report bank account details to the Indian company's banker and repatriate any profits to India. Specific requirements may apply depending on the host country location of the branch office.
The Reserve Bank of India reduced the limit for overseas direct investment under the automatic route from 400% to 100% of an Indian party's net worth, and also lowered the annual limit under the Liberalised Remittance Scheme for resident individuals from $200,000 to $75,000 for current account and capital account transactions. However, these reductions do not apply to certain public sector undertakings and the new limits apply prospectively rather than to existing arrangements.
Foreign investment in Indian limited liability partnerships is allowed in sectors that permit 100% foreign direct investment under the automatic route. Such investment requires prior government or Foreign Investment Promotion Board approval. Eligible investors are foreign residents or entities incorporated outside India, excluding citizens of Pakistan and Bangladesh. The investment must be equal to or greater than the fair market valuation of the LLP capital or profits, as determined by a chartered accountant. Remittances can only be made in cash through banking channels, and investments must be reported to the Reserve Bank within specified timelines. Downstream investments by LLPs are not permitted.
CA Sudha G. Bhushan presented on the topic of Non-Resident Indians. She discussed the definition of a non-resident according to regulations and relevant authorities such as RBI and SEBI. She also covered the differences between resident and non-resident individuals, examples to illustrate residency status, and facilities available to Non-Permanent Residents in India such as bank account types like NRO and NRE accounts. Restrictions on dealings in foreign exchange by residents and non-residents were also summarized.
1. An NRI or PIO can open and maintain various types of bank accounts in India including NRO, NRE, and FCNR accounts without RBI permission. They can hold savings, current, fixed deposits in these accounts.
2. NRIs have certain investment options in India such as government securities, stocks, mutual funds, and they can acquire immovable property other than agricultural land using funds from permitted sources.
3. Remittance and debit facilities vary across the different account types - NRO balances can be used for certain purposes up to $1 million per year while NRE and FCNR balances are more freely repatriable.
Foreign Currency and Foreign Currency Accounts for Residents under FEMADVSResearchFoundatio
Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency that can held by an individual in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the regulation which governs the possession of foreign currency in India and the various types of Foreign Current Accounts that can opened by an Indian resident and the related conditions.
MARG Properties gives complete guidelines to NRI, investment and tax planning. We also advice to NRI’s to invest in real estate, buying apartments, ultra luxury homes , to acquire immovable property in India,<a>Flats Chennai</a> and more.
The Reserve Bank of India liberalized external commercial borrowing guidelines relating to the creation of charges. Lenders can now allow creation of charges on immovable assets, movable assets, financial securities, and corporate or personal guarantees in favor of overseas lenders. Several conditions apply to the creation of these different types of charges. Charges on immovable assets must comply with foreign exchange regulations and the property can only be sold to an Indian resident if invoked. For movable assets, the lender's claim is restricted to the outstanding ECB amount and assets can be removed from India. Financial securities like share pledges are allowed subject to FDI and FII rules. Corporate guarantees require board approval and personal guarantees require an individual's request.
The document summarizes key changes made by the Reserve Bank of India to foreign exchange regulations relating to overseas direct investments by Indian parties. The changes liberalize rules around the creation of charges on shares and assets of joint ventures, wholly owned subsidiaries, and step-down subsidiaries. Specifically, the changes allow for the automatic routing of creating charges in favor of domestic or overseas lenders on shares and assets at any level of subsidiaries, extend this to group companies, and allow charges on domestic assets in favor of overseas lenders and overseas assets in favor of domestic lenders. The changes aim to provide more flexibility to Indian parties in availing foreign funding.
The document discusses a proposed real estate venture fund called the Parijat Fund that would invest in residential and commercial real estate development projects in major Indian cities. The fund would be open only to non-resident Indians, persons of Indian origin, and high net worth Indian individuals and corporations to avoid regulatory issues. It aims to raise $50 million and targets a gross return on equity of 25% annually for investors over a 5-year period by partnering with reputable Indian developers on new and existing projects.
Foreign exchange is applicable on all type of foreign inflow in the India. Fema is applicable venture funding in india. all investment by NRI in india subject to FEMA regulations.
India has experienced significant growth in its real estate industry due to factors such as rising incomes, growth of nuclear families, and growth of tier 2 and 3 cities. Laws and policies play an important role in shaping real estate investments in India. Real estate includes land and buildings used for residential or commercial purposes. Key laws governing real estate in India are the Central Acts, state municipal laws, and the consolidated FDI policy of 2010. These laws regulate transactions like sale, lease, mortgage, and license of real estate properties.
Tips for nr is investing in indian real estateVertexHomes
Tips for NRIs Investing in Indian Real Estate - Vertex Capital Vista West is an ongoing plotting venture which carries a rich legacy of 4 phases of Capital Vista that sold out within 24 months.
Through our international network of nearly 3,000 professionals and 18 years of experience, Jain Estates Oncor International is your trusted partner in real estate in India.
Returning NRIs face important tax and regulatory considerations when returning to India permanently. As residents, their global income and assets will be subject to Indian laws. NRIs have preferential tax status for some years if they have lived abroad for long periods. They can retain foreign investments but must convert foreign bank accounts to Indian resident status. Comprehensive financial and tax planning is needed to smoothly transition an NRI's financial affairs to Indian regulatory compliance.
The document summarizes key changes to foreign exchange laws in India regarding foreign direct investment in Limited Liability Partnerships (LLPs). It outlines eligibility requirements for foreign investors and LLPs to receive foreign investment, including that the LLP must operate in a sector that allows 100% foreign ownership. It also details pricing requirements, payment methods, reporting obligations, restrictions on downstream investments, and other conditions like ECB restrictions. Foreign investment in LLPs now requires prior government or Foreign Investment Promotion Board approval.
Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound contraventions under Foreign Exchange Management Act, 1999. In this webinar, we shall understand the provisions of FEMA Act and its regulations relating to Compounding of Offences
Investment in real estate sector in indiatapask7889
This document discusses investment opportunities for foreigners in India's real estate and housing sector. There are two main routes for investment - the direct route which allows Non-Resident Indians to invest up to 100% in projects, and the alternate route which requires Reserve Bank of India approval for foreign investors to purchase between 51-74% equity in an Indian company developing real estate projects. The alternate route has fewer restrictions on minimum investment amounts but requires RBI approval for financial transactions. Real estate development in India is considered high risk but also high return, with significant growth expected over the next 10-15 years.
Presentation on investment and taxation of NRI - Special privileges Sanjay Agrawal
The document discusses various definitions and concepts related to NRIs under FEMA and Income Tax Act including:
- Definitions of NRI, PIO, OCI, PRI, PROI under FEMA and their meanings.
- Legal framework of FEMA governing NRI investments including relevant regulations.
- Definitions of person, resident, non-resident under Income Tax Act and their tax treatment.
- Special privileges and exemptions available to NRIs under the Income Tax Act for various types of incomes like salary, house property, capital gains etc. as well as relief under double taxation avoidance agreements.
Presentation on Fema by CA. Sudha G. Bhushan [balance sheet and fema]TAXPERT PROFESSIONALS
The document discusses regulations related to balance sheets, foreign exchange management, and international transactions per the Companies Act, Income Tax Act, and Foreign Exchange Management Act of India. Key points include:
1. Balance sheets must provide a true and fair view of the company's financial position and comply with Schedule VI of the Companies Act.
2. The Income Tax Act contains several sections related to computing income from international transactions and reporting requirements.
3. FEMA regulates foreign exchange transactions and capital/current account transactions, requiring certain approvals and documentation for foreign investment, borrowings, remittances abroad, and other financial activities involving foreign exchange.
Key Takeaways:
Analysing the provisions of Sec 6
Recent budget amendments of Finance Act, 2020
Residency provisions under DTAA
Illustrations and Judicial Precedents
Establishing foreign branches abroad by indian companyVineeth T
Setting up a branch office abroad involves several steps and requirements. An Indian company can establish a branch office outside India to conduct normal business activities. The key steps include obtaining board approval, appointing an authorized representative, opening a bank account, and filing required forms and applications with the RBI through an Authorized Dealer along with supporting documents. The branch office must promptly report bank account details to the Indian company's banker and repatriate any profits to India. Specific requirements may apply depending on the host country location of the branch office.
The Reserve Bank of India reduced the limit for overseas direct investment under the automatic route from 400% to 100% of an Indian party's net worth, and also lowered the annual limit under the Liberalised Remittance Scheme for resident individuals from $200,000 to $75,000 for current account and capital account transactions. However, these reductions do not apply to certain public sector undertakings and the new limits apply prospectively rather than to existing arrangements.
Foreign investment in Indian limited liability partnerships is allowed in sectors that permit 100% foreign direct investment under the automatic route. Such investment requires prior government or Foreign Investment Promotion Board approval. Eligible investors are foreign residents or entities incorporated outside India, excluding citizens of Pakistan and Bangladesh. The investment must be equal to or greater than the fair market valuation of the LLP capital or profits, as determined by a chartered accountant. Remittances can only be made in cash through banking channels, and investments must be reported to the Reserve Bank within specified timelines. Downstream investments by LLPs are not permitted.
CA Sudha G. Bhushan presented on the topic of Non-Resident Indians. She discussed the definition of a non-resident according to regulations and relevant authorities such as RBI and SEBI. She also covered the differences between resident and non-resident individuals, examples to illustrate residency status, and facilities available to Non-Permanent Residents in India such as bank account types like NRO and NRE accounts. Restrictions on dealings in foreign exchange by residents and non-residents were also summarized.
1. An NRI or PIO can open and maintain various types of bank accounts in India including NRO, NRE, and FCNR accounts without RBI permission. They can hold savings, current, fixed deposits in these accounts.
2. NRIs have certain investment options in India such as government securities, stocks, mutual funds, and they can acquire immovable property other than agricultural land using funds from permitted sources.
3. Remittance and debit facilities vary across the different account types - NRO balances can be used for certain purposes up to $1 million per year while NRE and FCNR balances are more freely repatriable.
Foreign Currency and Foreign Currency Accounts for Residents under FEMADVSResearchFoundatio
Objectives & Agenda :
The Regulations under Foreign Exchange Management Act, 1999 regulate Foreign Currency that can held by an individual in India. In this Webinar we shall understand the Definition of the term 'Foreign Currency' and the regulation which governs the possession of foreign currency in India and the various types of Foreign Current Accounts that can opened by an Indian resident and the related conditions.
MARG Properties gives complete guidelines to NRI, investment and tax planning. We also advice to NRI’s to invest in real estate, buying apartments, ultra luxury homes , to acquire immovable property in India,<a>Flats Chennai</a> and more.
The Reserve Bank of India liberalized external commercial borrowing guidelines relating to the creation of charges. Lenders can now allow creation of charges on immovable assets, movable assets, financial securities, and corporate or personal guarantees in favor of overseas lenders. Several conditions apply to the creation of these different types of charges. Charges on immovable assets must comply with foreign exchange regulations and the property can only be sold to an Indian resident if invoked. For movable assets, the lender's claim is restricted to the outstanding ECB amount and assets can be removed from India. Financial securities like share pledges are allowed subject to FDI and FII rules. Corporate guarantees require board approval and personal guarantees require an individual's request.
The document summarizes key changes made by the Reserve Bank of India to foreign exchange regulations relating to overseas direct investments by Indian parties. The changes liberalize rules around the creation of charges on shares and assets of joint ventures, wholly owned subsidiaries, and step-down subsidiaries. Specifically, the changes allow for the automatic routing of creating charges in favor of domestic or overseas lenders on shares and assets at any level of subsidiaries, extend this to group companies, and allow charges on domestic assets in favor of overseas lenders and overseas assets in favor of domestic lenders. The changes aim to provide more flexibility to Indian parties in availing foreign funding.
The document discusses a proposed real estate venture fund called the Parijat Fund that would invest in residential and commercial real estate development projects in major Indian cities. The fund would be open only to non-resident Indians, persons of Indian origin, and high net worth Indian individuals and corporations to avoid regulatory issues. It aims to raise $50 million and targets a gross return on equity of 25% annually for investors over a 5-year period by partnering with reputable Indian developers on new and existing projects.
Foreign exchange is applicable on all type of foreign inflow in the India. Fema is applicable venture funding in india. all investment by NRI in india subject to FEMA regulations.
India has experienced significant growth in its real estate industry due to factors such as rising incomes, growth of nuclear families, and growth of tier 2 and 3 cities. Laws and policies play an important role in shaping real estate investments in India. Real estate includes land and buildings used for residential or commercial purposes. Key laws governing real estate in India are the Central Acts, state municipal laws, and the consolidated FDI policy of 2010. These laws regulate transactions like sale, lease, mortgage, and license of real estate properties.
Tips for nr is investing in indian real estateVertexHomes
Tips for NRIs Investing in Indian Real Estate - Vertex Capital Vista West is an ongoing plotting venture which carries a rich legacy of 4 phases of Capital Vista that sold out within 24 months.
Through our international network of nearly 3,000 professionals and 18 years of experience, Jain Estates Oncor International is your trusted partner in real estate in India.
This document provides a confidential disclaimer and overview of Embassy Property Developments Ltd., a leading real estate developer in India. It summarizes the company's 25-year track record, ongoing and proposed commercial, residential, retail, and hospitality projects totaling 89.9 million square feet of developable area, and key business parks including Embassy Golflinks and Manyata Embassy in Bangalore.
This document discusses investment opportunities for foreigners in India's real estate sector. There are two main routes for investment - the direct route for NRIs to invest up to 100% and the alternate route requiring RBI approval for foreign investors to own between 51-74% of an Indian company developing real estate projects. The alternate route has fewer minimum investment requirements but requires RBI approval for money transfers. Real estate can include development of residential and commercial projects, townships, and infrastructure. The document promotes partnering with the company for smaller real estate projects in India that could benefit from the country's expected growth in real estate over the next 10-15 years.
This document discusses investment opportunities for foreigners in India's real estate sector. There are two main routes for investment - the direct route for NRIs to invest up to 100% and the alternate route requiring RBI approval for foreign investors to own between 51-74% of an Indian company developing real estate projects. The alternate route has fewer minimum investment requirements but requires RBI approval for money transfers. Real estate can include development of residential and commercial projects, townships, and infrastructure. The document promotes partnering with the company for real estate investments that can benefit from India's growing sector.
This document discusses investment opportunities for foreigners in India's real estate sector. There are two main routes for investment - the direct route for NRIs to invest up to 100% and the alternate route requiring RBI approval for foreign investors to own between 51-74% of an Indian company developing real estate projects. The alternate route has fewer minimum investment requirements but requires RBI approval for money transfers. Real estate can include development of residential and commercial projects, townships, and infrastructure. The document promotes partnering with the company for real estate investments that can benefit from India's growing sector.
Cross border merger and acquisitions in india with special reference to femaFarhan Neguive
This document discusses inbound cross-border mergers and acquisitions (M&As) in India and how they are regulated under the Foreign Exchange Management Act (FEMA). It notes that FEMA and related regulations govern foreign investment in India and allow non-residents to purchase shares of Indian companies under the Foreign Direct Investment Scheme. It also discusses rules for rights issues, share transfers, and M&As involving share issuances to non-resident shareholders under FEMA. Inbound M&As are an important type of foreign investment in India that FEMA aims to facilitate while regulating cross-border financial flows.
Accounting & taxation of real estate buildersCA. Pramod Jain
This document summarizes accounting and taxation regulations and guidance related to real estate builders and developers in India. It discusses relevant accounting standards, laws, and rules governing various real estate transactions. Key topics covered include revenue recognition principles for real estate sales, project cost accounting, and conditions for revenue recognition by developers, including obtaining necessary approvals, reaching a minimum stage of project completion, and securing a portion of sales contracts.
BIVCO is an investment consultation company in South Africa that facilitates funding for development projects between R5 million to R1 billion from local and foreign investors. They work with entrepreneurs to develop viable proposals and pitches to present to investors, with an 89% successful funding rate. Projects interested in partnering with BIVCO must be implementation ready with determined costs and production plans.
The document discusses a talk given by Dr. Ajay Garg on the regulatory framework for secondary markets. It provides details of the talk such as the date, time and location. It then provides background information on Dr. Garg, including his qualifications and experience in various fields such as valuation, insolvency, and as an independent director of a bank. Contact information for Dr. Garg is also given.
The document summarizes India's foreign direct investment policy. It outlines that FDI is regulated by the Foreign Exchange Management Act and RBI. There are two routes for FDI - automatic and government. Most sectors allow up to 100% FDI through the automatic route. Some sectors require government approval. There are also conditions on issue/transfer of shares and limits on disinvestment within one year. FDI is prohibited in certain sectors like retail, gambling, real estate development and printing of Indian currency.
- There are no restrictions on the percentage of royalty payments for use of technology or trademarks under FEMA. Royalty payments are considered current account transactions.
- There are no restrictions on payment of commissions, except for commissions over USD 25,000 or 5% of inward remittance paid to agents abroad for sale of residential/commercial property in India.
- Payment for employee stock ownership plans (ESOPs) are considered capital account transactions governed by FEMA regulations.
- Under the Liberalized Remittance Scheme, residents can provide loans in foreign currency to non-resident Indian relatives.
- Profits from sale of property or shares by non-resident Indians are considered capital account transactions as the
NRIs have several options for investing in real estate in India. They can purchase residential or commercial property, receive property as a gift, or inherit property. Financial institutions provide home loans to NRIs and allow repayment through inward remittances. When purchasing property, NRIs must provide documents like their passport, salary details, bank statements, and power of attorney. NRIs pay stamp duty and registration fees but qualify for the same tax benefits on home loan interest as residents. Income from renting property may be taxed, and NRIs must pay capital gains tax if selling the property. Experts recommend checking property details like ownership status and permits to avoid legal issues.
The document provides an overview of key provisions related to inbound foreign investment under India's Foreign Exchange Management Act (FEMA). It discusses the structure of FEMA and differences between FEMA and income tax regulations. It then summarizes provisions for foreign direct investment, including prohibited sectors, automatic vs. approval routes, and procedural compliance requirements. Specific policies for sectors like construction, NBFCs, and trading are also outlined.
PPT on ODI and Compounding_29.06.2019.pdfRajesh Yadav
This document provides information on overseas direct investments (ODI) by Indian parties:
- It outlines the top 10 destination countries for ODI from India over the past 3 years, led by Mauritius and Singapore. Manufacturing is the largest sector for ODI.
- It defines key terms related to ODI such as joint ventures, wholly owned subsidiaries, and real estate business. ODI can be undertaken through the automatic or approval route from RBI.
- Under the automatic route, total financial commitment for a single overseas entity cannot exceed 400% of the Indian party's net worth. Various methods of funding investments like equity, debt, and guarantees are discussed along with related limits.
Will REITS be a game-changer for the Indian real-estate industry as it is exp...Aurum Equity Partners LLP
- The document discusses the potential for REITs (Real Estate Investment Trusts) to be a game-changer for the Indian real estate industry. It notes that REITs could provide more financing options for developers and open up the sector to greater investment.
- It outlines some of the key challenges currently facing real estate developers, including high interest rates on loans and lenders demanding more collateral. This suggests REITs could help address financing shortfalls in the industry.
- Several speakers with experience in real estate, law, and private equity are profiled, indicating they will provide perspectives on how REITs may impact the industry.
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Introduction to the Panel on: Pathways and Challenges: AI-Driven Technology in Agri-Food, AI4Food, University of Guelph
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Efficient PHP Development Solutions for Dynamic Web ApplicationsHarwinder Singh
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NIMA2024 | De toegevoegde waarde van DEI en ESG in campagnes | Nathalie Lam |...BBPMedia1
Nathalie zal delen hoe DEI en ESG een fundamentele rol kunnen spelen in je merkstrategie en je de juiste aansluiting kan creëren met je doelgroep. Door middel van voorbeelden en simpele handvatten toont ze hoe dit in jouw organisatie toegepast kan worden.
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2. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
BackgroundBackground
Prior to 2005, only NRI's and PIO's were allowed to investPrior to 2005, only NRI's and PIO's were allowed to invest
in the housing and the real estate sectors. Foreignin the housing and the real estate sectors. Foreign
investors other than NRIs were allowed to invest only ininvestors other than NRIs were allowed to invest only in
development of integrated townships anddevelopment of integrated townships and
settlementssettlements either through a wholly-owned subsidiaryeither through a wholly-owned subsidiary
or through a joint venture (JV) company along with aor through a joint venture (JV) company along with a
local partner.local partner.
India fully opened doors for FDI in real estate in 2005.India fully opened doors for FDI in real estate in 2005.
3. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Investing in India
Automatic Route
Government Route
(FIPB)
General Rule
No prior Permission Required
Only informing RBI within 30 days
of issue and reciept of funds
Prior Permission Required
4. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
FDI permitted 100% underFDI permitted 100% under
Automatic RouteAutomatic Route
Projects AllowedProjects Allowed
TownshipsTownships
HousingHousing
Built-up InfrastructureBuilt-up Infrastructure
Construction DevelopmentConstruction Development
which would include but not limited to housing,which would include but not limited to housing,
Commercial Premises, Hotels, resorts, Hospitals etcCommercial Premises, Hotels, resorts, Hospitals etc
5. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
FDI Current ScenarioFDI Current Scenario
Foreign direct investment (FDI) in India's real estate andForeign direct investment (FDI) in India's real estate and
housing market jumped 80 times between 2005 andhousing market jumped 80 times between 2005 and
2010 from Rs 171 crore to Rs 13,586 crore.2010 from Rs 171 crore to Rs 13,586 crore.
Of the total 1,614 projects in which foreign investorsOf the total 1,614 projects in which foreign investors
have put in money since 2005, 422 were cleared by thehave put in money since 2005, 422 were cleared by the
Reserve Bank of India'sReserve Bank of India's Mumbai office, followed closelyoffice, followed closely
by 316 in Delhiby 316 in Delhi
6. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Major Foreign Investors in RealMajor Foreign Investors in Real
Estate Sector in IndiaEstate Sector in India
Emmar Properties, of DubaiEmmar Properties, of Dubai
UK-based construction major, Laing O'Rourke (LOR)UK-based construction major, Laing O'Rourke (LOR)
Morgan-Stanley Real EstateMorgan-Stanley Real Estate
Vancouver-based Royal Indian Raj InternationalVancouver-based Royal Indian Raj International
Corporation (RIRIC)Corporation (RIRIC)
7. Guidelines for FDIGuidelines for FDI
Application in IndianApplication in Indian
Real EstateReal Estate
MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
8. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Minimum AreaMinimum Area
In case of development of serviced housing plots, 10In case of development of serviced housing plots, 10
hectares (25 acres)hectares (25 acres)
In case of construction-development projects, built-upIn case of construction-development projects, built-up
area of 50,000 sq m.area of 50,000 sq m.
In case of a combination project, any of the above twoIn case of a combination project, any of the above two
conditionsconditions
9. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
InvestmentInvestment
Minimum capitalizationMinimum capitalization
-for wholly owned subsidiaries - US$ 10 million-for wholly owned subsidiaries - US$ 10 million
-for JV with Indian partners - US$ 5 million-for JV with Indian partners - US$ 5 million
(to be brought in within 6 months of commencement of(to be brought in within 6 months of commencement of
business )business )
Original Investment cannot be repatriated before a period ofOriginal Investment cannot be repatriated before a period of
three years from completion of capitalization.three years from completion of capitalization.
The investor may exit earlier with prior approval from ForeignThe investor may exit earlier with prior approval from Foreign
Investment Promotion Board (FIPB).Investment Promotion Board (FIPB).
10. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Time Frame & RulesTime Frame & Rules
At least 50 per cent of the project to be developed withinAt least 50 per cent of the project to be developed within
five years from the date of obtaining all statutoryfive years from the date of obtaining all statutory
clearances.clearances.
Investor cannot sell undeveloped plots - where roads,Investor cannot sell undeveloped plots - where roads,
water supply, street lighting, drainage, sewerage andwater supply, street lighting, drainage, sewerage and
other conveniences are not available.other conveniences are not available.
Project to conform to the norms and standards of LocalProject to conform to the norms and standards of Local
Body concernedBody concerned
11. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Time frame & rules Contd.Time frame & rules Contd.
All necessary approvals including layout plans,All necessary approvals including layout plans,
infrastructure facilities as per the prevailing laws needsinfrastructure facilities as per the prevailing laws needs
to be procuredto be procured
The Local Body concerned which approves the layoutsThe Local Body concerned which approves the layouts
etc. would monitor compliance by the Developeretc. would monitor compliance by the Developer
12. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Hotels & Tourism, Hospitals & SEZHotels & Tourism, Hospitals & SEZ
ProjectsProjects
The Hotels & Tourism, Hospitals and SEZ Projects haveThe Hotels & Tourism, Hospitals and SEZ Projects have
benefits not attracting conditions as to Minimum Area ofbenefits not attracting conditions as to Minimum Area of
Development, Capitalisation and Time frameDevelopment, Capitalisation and Time frame
However, FDI in SEZ will be subject to SEZ Act andHowever, FDI in SEZ will be subject to SEZ Act and
Policy of the Department of the Commerce in this regardPolicy of the Department of the Commerce in this regard
13. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Investment by NRIInvestment by NRI
The Investments made by NRI in any of the Township,The Investments made by NRI in any of the Township,
Housing, Built Up, infrastructure and ConstructionHousing, Built Up, infrastructure and Construction
Development Projects also does not attract conditions asDevelopment Projects also does not attract conditions as
to Minimum Area of Development, Capitalisation andto Minimum Area of Development, Capitalisation and
Time frameTime frame
14. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
FDI not allowedFDI not allowed
As per paragraph 5.1. (h) and 5.23.10 of Chapter V of DIPPAs per paragraph 5.1. (h) and 5.23.10 of Chapter V of DIPP
which expressly prohibits in Real Estate business orwhich expressly prohibits in Real Estate business or
Construction of Farm Houses. It should be noted that FDI inConstruction of Farm Houses. It should be noted that FDI in
any form is prohibited in Real estate business. FDI is notany form is prohibited in Real estate business. FDI is not
allowed in a partnership or proprietary concern if it is engagedallowed in a partnership or proprietary concern if it is engaged
in real estate business. Even investment by a Non Residentin real estate business. Even investment by a Non Resident
India or a Person of Indian Origin in such partnership orIndia or a Person of Indian Origin in such partnership or
concern is not allowed.concern is not allowed.
Real estate business means buying and selling of real estateReal estate business means buying and selling of real estate
or trading in Transferable Development Rights (TDRor trading in Transferable Development Rights (TDR’s)’s)
15. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Foreign national of non-IndianForeign national of non-Indian
originorigin
Such person resident outside India cannot purchase anySuch person resident outside India cannot purchase any
immovable property in India. But, he/she may takeimmovable property in India. But, he/she may take
residential accommodation on lease provided the periodresidential accommodation on lease provided the period
of lease does not exceed five years. In such cases, thereof lease does not exceed five years. In such cases, there
is no requirement of taking any permission of oris no requirement of taking any permission of or
reporting to Reserve Bankreporting to Reserve Bank
16. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Acquisition by NRI & PIO in IndiaAcquisition by NRI & PIO in India
Permitted to purchase Residential and Commercial Property withoutPermitted to purchase Residential and Commercial Property without
RBIRBI’S Permission’S Permission
No Limitation on the Number / size of the PropertyNo Limitation on the Number / size of the Property
Purchase of Agricultural Land/ Plantation Property/ Farm HousesPurchase of Agricultural Land/ Plantation Property/ Farm Houses
requires RBI Permissionrequires RBI Permission
PIO should not be a citizen of Pakistan , Bangladesh , Sri Lanka ,PIO should not be a citizen of Pakistan , Bangladesh , Sri Lanka ,
Afghanistan , China , Iran , Nepal , BhutanAfghanistan , China , Iran , Nepal , Bhutan
Citizen of above Countries not permitted to acquire ImmovableCitizen of above Countries not permitted to acquire Immovable
Property except by way of Lease for less than five years withoutProperty except by way of Lease for less than five years without
permission of RBIpermission of RBI
17. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Acquisition by NRI & PIO in IndiaAcquisition by NRI & PIO in India
Contd.Contd.
i.i. Payment can be made by NRI / PIO out ofPayment can be made by NRI / PIO out of
i.i. Funds remitted to India through normalFunds remitted to India through normal banking channel orbanking channel or
ii.ii. Funds held in NRE / FCNR / NRO account maintained in IndiaFunds held in NRE / FCNR / NRO account maintained in India
ii.ii. No payment can be made either by traveler's cheque orNo payment can be made either by traveler's cheque or
by foreign currency notes and also no payment can beby foreign currency notes and also no payment can be
made outside India.made outside India.
18. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Transfer of Property by NRI/PIOTransfer of Property by NRI/PIO
TransferringTransferring
residential/residential/
commercial propertycommercial property
NRINRI PIOPIO
By saleBy sale Can sell to personCan sell to person
resident in India; NRI orresident in India; NRI or
PIOPIO
Can sell only to a personCan sell only to a person
resident in Indiaresident in India
By giftBy gift Can gift to personCan gift to person
resident in India; NRI; orresident in India; NRI; or
PIO. If property is beingPIO. If property is being
gifted to a foreigngifted to a foreign
national of non-Indiannational of non-Indian
origin, prior permission oforigin, prior permission of
RBI is requiredRBI is required
Can gift to personCan gift to person
resident in India; NRI; orresident in India; NRI; or
PIO. If property is beingPIO. If property is being
gifted to a foreigngifted to a foreign
national of non-Indiannational of non-Indian
origin, prior permission oforigin, prior permission of
RBI is requiredRBI is required
19. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Transfer of Property by NRI/PIOTransfer of Property by NRI/PIO
Contd.Contd.
TransferringTransferring
agricultural/plantatagricultural/plantat
ion/ farm houseion/ farm house
propertyproperty
NRINRI PIOPIO
By saleBy sale Can sell only toCan sell only to
person resident inperson resident in
IndiaIndia
Can sell only to aCan sell only to a
person resident inperson resident in
India who is a citizenIndia who is a citizen
of Indiaof India
By giftBy gift Can gift only to personCan gift only to person
resident in Indiaresident in India
Can gift only to aCan gift only to a
person resident inperson resident in
India who is a citizenIndia who is a citizen
of Indiaof India
20. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
MortgageMortgage
i.i. NRI / PIO can mortgage to:NRI / PIO can mortgage to:
i.i. An authorized dealer / housing finance institution in IndiaAn authorized dealer / housing finance institution in India
– without the approval of Reserve Bank.– without the approval of Reserve Bank.
ii.ii. A party abroad - with prior approval of Reserve Bank.A party abroad - with prior approval of Reserve Bank.
ii.ii. A foreign national of non-Indian origin can mortgage onlyA foreign national of non-Indian origin can mortgage only
with prior approval of Reserve Bankwith prior approval of Reserve Bank
iii.iii. A foreign company which has established a Branch Office orA foreign company which has established a Branch Office or
other place of business in accordance with FERA/FEMAother place of business in accordance with FERA/FEMA
regulations has general permission to mortgage the propertyregulations has general permission to mortgage the property
with an authorized dealer in Indiawith an authorized dealer in India
21. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Sale / Purchase by ForeignSale / Purchase by Foreign
Embassies/ Diplomats/ConsulateEmbassies/ Diplomats/Consulate
May purchase/sell Immovable Property in India otherMay purchase/sell Immovable Property in India other
than agricultural/plantation/ farm house propertythan agricultural/plantation/ farm house property
They should obtain clearance from Ministry of ExternalThey should obtain clearance from Ministry of External
Affairs through inward remittance of Foreign ExchangeAffairs through inward remittance of Foreign Exchange
22. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Repatriation of Sale Proceeds byRepatriation of Sale Proceeds by
NRI/PIONRI/PIO
Property acquired as per rules prevalentProperty acquired as per rules prevalent
In case the payment is made for acquisition out of
foreign exchange sources through normal Banking
Channels/NRE/FCNR the amount repatriated should not
exceed the foreign currency equivalent paid
Capital Gains may be credited to NRO Account from
which NRI/PIO may repatriate the sale proceeds abroadrepatriate the sale proceeds abroad
up to US$ 1 million per financial year subject to taxup to US$ 1 million per financial year subject to tax
compliancecompliance
23. Repatriation of Sale Proceeds byRepatriation of Sale Proceeds by
NRI/PIO Contd.NRI/PIO Contd.
In case the payment is made for acquisition out of balances
held in NRO Account out of rupee sources NRI/PIO may
repatriate the sale proceeds abroad up to US$ 1 million perrepatriate the sale proceeds abroad up to US$ 1 million per
financial year subject to tax compliancefinancial year subject to tax compliance
Remittance will be permitted on submission of certificate ofRemittance will be permitted on submission of certificate of
CA in form prescribed by CBDTCA in form prescribed by CBDT
Repatriation in the above cases are also restricted to not
more than two such residential properties.
MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
24. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Case LawCase Law
In Geeta Reinboth vs Mrs J Clairs Brohier (2005), it hasIn Geeta Reinboth vs Mrs J Clairs Brohier (2005), it has
been held that restriction on Acquisition, holding etc. ofbeen held that restriction on Acquisition, holding etc. of
immovable property cannot be stretched so as to includeimmovable property cannot be stretched so as to include
prohibition of right of inheritanceprohibition of right of inheritance
25. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Immovable Property purchase byImmovable Property purchase by
Foreign Company in IndiaForeign Company in India
A foreign company establishing Branch Office or other place ofA foreign company establishing Branch Office or other place of
business in India, can acquire any immovable property in India,business in India, can acquire any immovable property in India,
which is necessary for or incidental to carrying on such activity.which is necessary for or incidental to carrying on such activity.
The payment for acquiring such property to be made by way ofThe payment for acquiring such property to be made by way of
foreign inward remittance through proper banking channel. Aforeign inward remittance through proper banking channel. A
declaration indeclaration in form IPIform IPI should be filed with Reserve Bank withinshould be filed with Reserve Bank within
ninety days from the date of acquiring the property.ninety days from the date of acquiring the property.
On winding up of the business, the sale proceeds of such propertyOn winding up of the business, the sale proceeds of such property
can be repatriatedcan be repatriated only with the prior approval of Reserve Bank.only with the prior approval of Reserve Bank.
26. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
Immovable Property purchase byImmovable Property purchase by
Foreign Company in IndiaForeign Company in India
Acquisition of immovable property by entities who had set upAcquisition of immovable property by entities who had set up
Branch Offices in India and incorporated in Pakistan, Bangladesh,Branch Offices in India and incorporated in Pakistan, Bangladesh,
Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan wouldSri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would
require prior approval of RBIrequire prior approval of RBI
Foreign Company has establishing Liaison Office can not acquireForeign Company has establishing Liaison Office can not acquire
immovable property . In such cases, Liaison Offices, can takeimmovable property . In such cases, Liaison Offices, can take
property by way of lease not exceeding 5 years.property by way of lease not exceeding 5 years.
Foreign company which has established a Branch Office or otherForeign company which has established a Branch Office or other
place of business in accordance with FERA/FEMA regulations hasplace of business in accordance with FERA/FEMA regulations has
general permission to mortgage the property with an authorizedgeneral permission to mortgage the property with an authorized
dealer in Indiadealer in India
27. MAHESHWARI & CO.MAHESHWARI & CO.
Advocates & Legal ConsultantsAdvocates & Legal Consultants
FII Vs FDIFII Vs FDI
Real Estate projects can attract FDI up to 100 percent,Real Estate projects can attract FDI up to 100 percent,
subject to certain conditions. Previously company not willingsubject to certain conditions. Previously company not willing
to meet the stringent project conditions, the FII route wasto meet the stringent project conditions, the FII route was
used to overcome the rules and bring in foreign investment.used to overcome the rules and bring in foreign investment.
All the company needs to do was get FIIs that are registeredAll the company needs to do was get FIIs that are registered
with SEBI to invest in the IPOwith SEBI to invest in the IPO
Though RBI has objected towards the IPO investment throughThough RBI has objected towards the IPO investment through
FII where the conditions are not fulfilled however still FII areFII where the conditions are not fulfilled however still FII are
been done through the secondary marketbeen done through the secondary market