FDI Compliance

Any investor outside India, by any chance want to invest in India on equity instrument irrespective of sector, required to take RBI approval for which applicable form has to be reported to Foreign Exchange Management Department of RBI. It is based on sectoral regulation, if any applied. 

Introduction

Every institution in India is required to take approval from either Government or RBI, as the case may be for the authorization of foreign investor fund in resident institution.

Under this, investment from abroad got regularized and required form etc. are filed to foreign exchange department for approval. 

If the investment is in the form of equity instrument then it is termed as foreign direct investment and same need to be approved by Foreign Exchange Department in FC-GPR. Similarly transfer of share/equity etc then by FC-TRS. Similarly, External commercial borrowing has to be registered with RBI via AD bank for its approval and loan number. This kind of approval services is provided under this service.

It is required to make foreign money legitimate and usable in India so the compliance can’t be avoided instead need to manage and submit in advance for regularization of fund.