Foreign investment in India has been a major driver of economic growth. The government regulates foreign investment through the Foreign Direct Investment Policy and the Foreign Exchange Management Act, which allow foreign investment through two routes: the automatic route for sectors with 100% foreign ownership, and the approval route for sectors with caps or requiring case-by-case approval. Common modes of foreign investment include equity shares, compulsorily convertible debentures, and compulsorily convertible preference shares. Sectors are classified as prohibited, restricted, or permitted up to 100% for foreign investment. Strict procedures must be followed for foreign investment under both routes.
Key Takeaways:
Recent amendment in FDI policy for foreign investment
Ambiguities relating to the amendment
Probable impact of the changes in the policy
Overview of other countries' rule for strategic takeovers
WTO principles and inference
FEMA Regulations for Incorporation of WOS/JV/ Step-down Subsidiary outside IndiaDVSResearchFoundatio
Key Takeaways:
Acquisition of JV/WOS by Indian parties
Approvals required for investment in JV/WOS by Indian parties
Understanding step-down subsidiary
Setting up step-down subsidiary outside India and reporting procedures involved
Key Takeaways:
Methods of funding for investmenr in overseas JV/WOS
Capitalization of export proceeds
Investment in equity of companies registered overseas/rated debt instruments
Acquisition of foreign company through bidding or tender procedure
Key Takeaways:
Recent amendment in FDI policy for foreign investment
Ambiguities relating to the amendment
Probable impact of the changes in the policy
Overview of other countries' rule for strategic takeovers
WTO principles and inference
FEMA Regulations for Incorporation of WOS/JV/ Step-down Subsidiary outside IndiaDVSResearchFoundatio
Key Takeaways:
Acquisition of JV/WOS by Indian parties
Approvals required for investment in JV/WOS by Indian parties
Understanding step-down subsidiary
Setting up step-down subsidiary outside India and reporting procedures involved
Key Takeaways:
Methods of funding for investmenr in overseas JV/WOS
Capitalization of export proceeds
Investment in equity of companies registered overseas/rated debt instruments
Acquisition of foreign company through bidding or tender procedure
Key Takeaways:
- What is Single Master Form
- Registration in FIRMS Portal
- Structure of FC-GPR
- Procedures and documents required
- Reason for rejection of form
Impact due to change in residential status - FEMA perspectiveDVSResearchFoundatio
Key Takeaways:
Various bank accounts
ODI and FDI investments
Property held in India and Outside India
Loan transactions
Demat, Insurance policies and PPF accounts
To gain knowledge on various reports and forms prescribed by RBI for transactions undertaken under the ambit of FEMA. In this Webinar we shall look into various reports and forms which are to be submitted by or through Authorised persons/ dealers in specific cases like Foreign investment, Overseas Direct Investment, External Commercial Borrowings.
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.
How to make outbound investment from india financing & complianceRamanuj Mukherjee
Detailed procedure for making outbound investment from India. Includes financing options for the same and foreign foreign exchange, securities and company law compliances (RBI, FEMA, SEBI, and Companies Act).
‘FDI’ means investment by non-resident entity/person resident outside India in the capital of an Indian company as per FEMA Regulations.
Investments can be made by non-residents in the equity shares/ fully, compulsorily and mandatorily convertible debentures/ fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Under the Government Route, prior approval of the Government of India is required. Proposals for foreign investment under Government route are considered by FIPB.
Foreign Direct Investment (FDI) is one of the most popular route for foreigners to start a company in India. This slide share would explain about FDI in private limited company.
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.
Key Takeaways:
- What is Single Master Form
- Registration in FIRMS Portal
- Structure of FC-GPR
- Procedures and documents required
- Reason for rejection of form
Impact due to change in residential status - FEMA perspectiveDVSResearchFoundatio
Key Takeaways:
Various bank accounts
ODI and FDI investments
Property held in India and Outside India
Loan transactions
Demat, Insurance policies and PPF accounts
To gain knowledge on various reports and forms prescribed by RBI for transactions undertaken under the ambit of FEMA. In this Webinar we shall look into various reports and forms which are to be submitted by or through Authorised persons/ dealers in specific cases like Foreign investment, Overseas Direct Investment, External Commercial Borrowings.
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.
How to make outbound investment from india financing & complianceRamanuj Mukherjee
Detailed procedure for making outbound investment from India. Includes financing options for the same and foreign foreign exchange, securities and company law compliances (RBI, FEMA, SEBI, and Companies Act).
‘FDI’ means investment by non-resident entity/person resident outside India in the capital of an Indian company as per FEMA Regulations.
Investments can be made by non-residents in the equity shares/ fully, compulsorily and mandatorily convertible debentures/ fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Under the Automatic Route, the non-resident investor or the Indian company does not require any approval from Government of India for the investment. Under the Government Route, prior approval of the Government of India is required. Proposals for foreign investment under Government route are considered by FIPB.
Foreign Direct Investment (FDI) is one of the most popular route for foreigners to start a company in India. This slide share would explain about FDI in private limited company.
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.
Doing Business in India Simplified. Interesting information on Why India is attractive investment destination?, India's Industrial Policy, FDI in India, FII in India, Exchange Control Regulations in India, ADRs, GDRs, Laws governing business in India, Important regulatory authorities for Foreign Investment, Various Growth Sectors of Economy for Foreign Investments, Tax Regime of India, etc.
Doing Business in India Simplified. Interesting information on Why India is attractive investment destination?, India's Industrial Policy, FDI in India, FII in India, Exchange Control Regulations in India, ADRs, GDRs, Laws governing business in India, Important regulatory authorities for Foreign Investment, Various Growth Sectors of Economy for Foreign Investments, Tax Regime of India, etc.
Etude PwC Breaking Dawn on the Horizon - Destination India (2013)PwC France
http://pwc.to/Hf02OP
Si l'Inde est plus modérée sur son taux de croissance par rapport à ses prévisions précédentes, la comparaison est toujours avantageuse comparé à de nombreux autres pays. Le FMI prévoit que le taux de croissance du PIB de l'Inde sera derrière la Chine en 2014, mais il est toujours meilleur que les taux de croissance des pays émergents et en voie de développement et des économies avancées.
The presentation discusses various aspects of Corporate Governance and involved issues, keeping in view the recent developments and controversies arose in conglomerates such as Tata and Infosys. It aims at portraying the extant position in filed of Corporate Governance vis-a-vis a pragmatic view of what it would be.
A Presentation given by Mr. Pavan Kumar Vijay, Past President, ICSI, Chairman-Secretarial Standards Board
on Corporate Governance through the eyes of Secretarial Standards.
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on M&A Valuation and challenges at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016. Corporate Professionals acted as the event supporting partner.
• In case of a merger valuation, the emphasis is on arriving at the relative values of the shares of the merging companies to facilitate determination of the swap ratio, hence, the purpose is not to arrive at absolute values of the shares of the companies. The key issue to be addressed is that of fairness to all shareholders. There are established legal precedence for merger valuation methodologies:
• Valuer’s role is to incorporate case specific factors and use appropriate methodologies so as to determine a fair ratio
• Usually, best to give weight ages to valuation by all methods
• Market price method and Earnings methods dominate.
• It is observed that in case of M&A, the Valuations depart from the concept of “Fair Value” as elements like Distress Sale, Desperate Buy, Comparable Transaction Multiples come into play reflecting Price than Value.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Relative Valuation - Techniques & Application at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016.
Relative Valuation in which value of an asset or liability is done by comparing it to its Peers is pervasive and preferred for ascertaining Fair Value at a point of time as it reflects the market positioning of the Industry and Peers at that time. While Discounted Cash Flow (DCF) method is applied for arriving at Fundamental Valuation, most M&A transaction are based on Relative Valuation multiples (mostly Earnings based). The valuation ratio typically expresses the valuation as a function of a measure of Key Financial Metrics like PE, EV/EBITDA, EV/Sales or Book Value Multiple.
But before using a multiple, one should know the fundamentals determining the multiple and how changes impact it. Sanity check through use of fundamental valuation method like DCF is strongly recommended.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Valuation Principles & Techniques in Ind AS at a seminar organised by Gurgaon Branch of ICAI on 3rd September, 2016.
IndAS113 prescribes Fair Valuation definition, Techniques, Application and its Hierarchy. About 75% of the Balance Sheet Size is expected to change due to Fair Value Accounting (#IndAS109 #Financial Instruments, #IndAS102 #Share based payments, #IndAS16 Property Plant Equipments (PPE), #IndAS103 #Business combination etc. shall be impacted using #FairValue. Time to get ready, Plan Prepare and Align with the new requirements...
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
The 2015 budget had long list of expectations. On one hand; the Government has addressed major issues surrounding the foreign investors which would certainly boost capital market inflows and revive the private equity industry (by deferring GAAR by 2 years and clarifying Permanent Establishment & Indirect Transfer of Assets). On other hand; it has just rationalized the subsidies. Probably as we see growth coming in and more job creation; subsidy burden can be better dealt with by the Government. Though there are no direct benefits for the middle class. However incentives have been introduced to encourage savings. These savings are expected to fuel the infrastructure and other investment plans laid out by the Government. Certainly Foreign investors have a reason to cheer for this Pro Business; Pro Growth Government budget.
Takeover Panorama, a Monthly Newsletter by Corporate Professionals on Takeove...Corporate Professionals
-The brief synopsis of recent Judicial Pronouncements given by the SEBI, AO, SAT, Informal Guidance and Consent orders passed in the month of December in the matter of SEBI Takeover Regulations.
-The brief synopsis of latest Open Offers given by the National as well as International Acquirers under the SEBI Takeover Regulations
-Unhide the hidden but important provision of the SEBI Takeover Regulations which generally get unnoticed on a plain reading of the regulations.
Acquisition of stake in YourNest Angel Fund by Religare Global Asset Management
Acquisition of stake in Bokaro Jaypee Cement by Dalmia Bharat
Telstra Health Acquires Business of IdeaObject
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
1. Foreign Investment in a
Company
Introduction
As the world turned to a global village, India leaped ahead of its Peer Countries due to its several investment
opportunities, huge growth potential and favorable business environment and become hub of Foreign Investment.
The steady growth of foreign investment in the Country since the past few years has become one of the pivotal
factors in determining the pace of growth of Indian Economy. The foreign Investment in India is not only a growth
driver for India Inc. but it also it plays a vital role in granting confidence and trustworthiness to the present as well as
potential stakeholders of the organization besides earning International repute and recognition for the country.
Infusion of foreign funds in the veins of Indian Economy has largely stimulated the growth of Indian Economy and
with the government further liberalizing and streamlining the Foreign Investment policies and procedures, is hopefully
supposed to play a crucial role even for the times to come.
FDI Policy
FDI is primarily governed by the Foreign Exchange Management Act, 1999 (FEMA) which lays down the broad
framework under which Government of India through various regulatory bodies create, review and regulate the
detailed provisions. The Government of India through Department of Industrial Policy & Promotion (DIPP) releases
two comprehensive FDI policy in an year vide its Circulars which are effective from April 1 and October 1 of each
year, the said FDI Policy combines all the prior policies/regulations relating to FDI in India in a single document .
Every consolidated FDI policy circular, substitutes the last policy circular. The policy can be downloaded from
www.dipp.nic.in.
Modes of Foreign Investment in the Company
„Foreign investment‟ refers to an investment in an enterprise by a Non-Resident whether it involves new capital or re-
investment of earnings. Foreign investment is of two kinds – (i) Foreign Direct Investment (FDI) and (ii) Foreign
Portfolio Investment. Any non-resident entity (other than a citizen of Pakistan or an entity incorporated in Pakistan)
can invest in India, subject to the FDI Policy. The government of India has also specified the class of entities in which
the Foreign Investment can be made and with respect to each set of entities there are separate guidelines and
criteria to be followed. Indian Company being one of the recognized entities for receiving Foreign Investment, FDI in
such entities flows under two routes – (a) Automatic Route and (b) Approval Route.
Automatic Route
All Foreign Direct Investment proposals which do not require the approval of Foreign Investment Promotion Board are
said to be investment under Automatic Route. This route is available to all sectors or activities that do not have a
“sector cap” i.e. where 100% foreign ownership is permitted or where investment up to sectoral cap is allowed without
approval.
Approval Route
All Foreign Direct Investment proposals, wherein the proposed investment in Indian Company is above the prescribed
sector caps or where the proposed investment is in such sectors where investment is allowed only pursuant to
approval, falls under the approval route.
Instruments for receiving Foreign Investment
The investment as aforesaid may be made in the Indian companies in any of the following modes:
equity shares,
fully, compulsorily and mandatorily convertible debentures and
fully, compulsorily and mandatorily convertible preference shares
2. In case any Unlisted Company issues any of the aforesaid instrument, than their pricing shall be determined by
Discounted Cash Flow (DCF) method of valuation and in case of any listed company, according to method provided
in SEBI (ICDR) Regulations. In case of convertible instrument the price or conversion formula of such instruments
should be determined upfront at the time of their issuance. The price at the time of conversion should not in any case
be lower than the fair value worked out, at the time of issuance of such instruments, in accordance with the valuation
method as provided aforesaid.
Inwards remittance through the issuance of Depository Receipts and Foreign Currency Convertible Bonds (FCCB)
are also counted towards FDI.
Sectoral caps with reference to Foreign Investment
The government of India has, for the purpose of ensuring maximum economic growth and at the same time
maintaining National interest divided the business activities into three different sectors. Each of the sectors has
specified industries and procedures under its purview and specifies conditions to be followed with a view to infuse
Foreign Investment in such specific industry of the sector. Such Sectors includes:-
1. Prohibited Sectors – Sectors wherein Foreign Investment is strictly prohibited i.e wherein no application for
approval can be made.
2. Restricted Sector – Sectors wherein Foreign Investment is permitted under automatic approval up to a
specified percentage and for any increase beyond such specified percentage, approvals is required or per
se there are certain sectors wherein foreign investment is allowed only pursuant to approvals.
3. 100% Automatic Sectors – Sectors under Automatic Route means such sectors wherein 100% investment is
allowed without seeking any governmental approvals.
3. Foreign Investment – Overview of implications involved
As and when the question regarding infusion of Foreign Funds arise, the first criteria to be verified is regarding which
sectors such industry falls. In case of Automatic Route, the non-resident investor or the Indian company does not
require any approval from Governmental authority, whereas, under the Restricted Sectors, prior approval of the
Government of India through Foreign Investment Promotion Board (FIPB), Department of Economic Affairs (DEA),
Ministry of Finance may be required. With specific reference to certain specified sectors, Foreign Equity should be
infused after seeking approval and abiding by the policies & regulations of concerned authority as well such as SEBI,
TRAI, IRDA, MIB etc.
Cases requiring approval
For proposals involving FDI under the Government route the following approval levels operate within the Foreign
Investment Promotion Board i.e. though the requisite application would be filed by the applicant to the FIPB, it would
be disposed of following the specified manner:-
While granting approval to any application filed with the FIPB the FIPB takes into consideration and scrutinize various
important aspects therein a brief flow chart of the procedure followed therein is specified below:-
The FIPB is instructed not to change or impose additional conditions in any specific letter of approval pursuant to
grant of such letter of approval to any Non-resident investor, Guidelines for e-filing of applications, filing of
amendment applications and instructions to applicants are available at FIPB‟s website (http://finmin.nic.in/ ) and
(http://www.fipbindia.com ).
Procedural implications with reference to Foreign Investment
In seeking foreign Investment under automatic route or under approval route post acquiring requisite approval, the
following issues must be taken care of:-
The Indian company receiving foreign investment should report the details of the amount of consideration to
the Regional Office of concerned RBI through its Category 1 Authorized Dealer not later than 30 days from
the date of receipt. Such report should be accompanied with copy of FIRC/s evidencing the receipt of the
remittance and the KYC report on the non-resident investor from the overseas bank remitting the amount,
upon submission of which a Unique Identification Number (UIN) for the amount reported would be allotted to
the entity.
4. The Capital Instrument must be issued within 180 days of the date of receipt of the inward remittance or by
debit to the NRE/FCNR (B) account of the non-resident investor. In case the same is not done within the
specified time frame the amount should be refunded to such non-resident shareholder.
The Capital Instrument must be priced in accordance with the valuation methodology provided.
After issue of shares (including shares issued on rights basis and shares issued under ESOP)/fully,
mandatorily & compulsorily convertible debentures / fully, mandatorily & compulsorily convertible preference
shares, the Indian company has to file Form FC-GPR, to the Regional Office of concerned RBI through its
Category 1 Authorized Dealer not later than 30 days from the date of issue of Shares along with requisite
annexure.
Separate forms are prescribed for reporting of non cash issuance and FCCB/ADR/GDR issues.
Conclusion
One of the main element which could lead to the improvement in the economic condition of the Country is the
increase in the inflow of foreign investment. Towards such initiative the Government has time and again being
simplifying procedural aspects and making its guidelines user friendly whether such user be a Foreign investor or the
investee company seeking any approval. Though such steps are steadily taken by the Government however it‟s
essential that a steady flow of such policies is maintained so that foreign investment for future also continues to rise.
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