Foreign investment in Indian equity instruments follows sectoral caps, entry routes, and sector-specific compliance conditions. Foreign investment in equity instruments of Indian companies is subject to sectoral caps, entry routes and attendant conditions. The automatic route does ... Summary
Foreign investment in Indian equity instruments follows sectoral caps, entry routes, and sector-specific compliance conditions.
Foreign investment in equity instruments of Indian companies is subject to sectoral caps, entry routes and attendant conditions. The automatic route does not require prior approval, whereas the government route requires Government approval and compliance with stipulated conditions. Investment is prohibited in specified activities, including lottery, gambling, chit funds, nidhi companies, transferable development rights, real estate business, farm-house construction and tobacco-product manufacturing. Recipient companies bear responsibility for compliance with applicable caps, security requirements, sectoral regulations, reporting obligations and conditions concerning ownership, control, licensing, sourcing, governance or audit.
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