Foreign Direct Investment

Investment by a non-resident entity or person in an Indian company through equity shares, convertible debentures, or mandatorily convertible preference shares under the FDI Policy and FEMA. Permitted through automatic route or government route depending on sector.

Foreign Direct Investment is governed by the Foreign Exchange Management Act, 1999 and regulated by RBI. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.

Foreign Direct Investment is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with FEMA regulatory matters in India.