Foreign direct investment rules define entry routes, sector conditions, instrument types, reporting obligations and compliance mechanisms. The Circular sets out a comprehensive framework for Foreign Direct Investment, distinguishing the Automatic Route and Government Route, specifying eligible instruments (equity and fully mandatorily convertible instruments), pricing and valuation norms, conditions for issuance and conversion of foreign borrowings and ADRs/GDRs, and timelines for issuance against inward remittances. It prescribes transfer, escrow and pledge procedures, KYC and Form-based reporting to RBI (including FC-GPR and FC-TRS), rules for calculating direct and indirect foreign investment across multilayered structures, and sectoral entry conditions and caps with associated compliance obligations.
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Foreign direct investment rules define entry routes, sector conditions, instrument types, reporting obligations and compliance mechanisms.
The Circular sets out a comprehensive framework for Foreign Direct Investment, distinguishing the Automatic Route and Government Route, specifying eligible instruments (equity and fully mandatorily convertible instruments), pricing and valuation norms, conditions for issuance and conversion of foreign borrowings and ADRs/GDRs, and timelines for issuance against inward remittances. It prescribes transfer, escrow and pledge procedures, KYC and Form-based reporting to RBI (including FC-GPR and FC-TRS), rules for calculating direct and indirect foreign investment across multilayered structures, and sectoral entry conditions and caps with associated compliance obligations.
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