निवेश के अवसर

Introduction

• FI in India - As Per Indian Policy
• Guidelines of Government of India
• Provs of Fema.sec 6
• Provs of Regulations
• Under Fema (Fema 20)
• Routes Of Investments
• Automatic-r B I Route
• Sch I Of Fema 20
• Gen Permn In R/o Annx B Activities
• Subject To Sectoral Caps
• Govt Route (Sia-fipb) Approval
• Activities In Annx B

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Types of Investments

• Government Securities
• M.M.F Insts/Units
• PSU Bonds
• Commercial Papers
• Shares of PSES Disinvested by Government of India
• Deposition Indian companies subject to approval by Government of India/NBFC
• Investment not permitted in companies engaged in Agri/plant/real estate
• Equity Capital - shares/debs
• On repat and/or non-repat basis
• Under Portfolio Invest Scheme
• New Issues
• Investing/ acquisition of shares of existing companies

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Portfolio Invest Scheme for NRI/OCB/PIOs

• Allowed to invest in secondary market, up to 10% of the total shares through stock exchanges, both on repat/ non-repat basis
• Through designated branches of ads in form NRI (non-repat), RPI (repat)
• For OCB's - NRC and RPC
• Can authorize residents as agents
• Or stock brokers, but to route through designated branches
• Conditions:-
• With or without repatriation
• Purchase through stock exchange and design branch (only one bank)
• Up to 10% of PUC of the company
• And 10% of PUC of each series of issues for all NRIs/OCBs together
• Ruling market price
• No short selling, and delivery to take place

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Non-Repat Basis

• Form NRI/NRC
• Onetime Gen Permission
• Payment to be received through inward
• Remittance or from investors
• NRE/FCNR/NRO/NRSR account

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Repat Basis

• Form RPI/RPC
• Onetime Gen Permission
• Payment to be received through inward remittance or by debit to investor's NRE/FCNR account
• Investment by individual NRI/OCB in listed Indian company not to exceed 5% of its total PUC of each series of PUC or Convt debs issued by it
• Cases not covered to be referred to RBI

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Monitoring of Portfolio Invest Scheme

• Invest up to 24% allowed in R/O companies passing gen body resolution to the effect
• To approach ECD Co with Neccy Resoln

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Housing/Real Estate Development Scheme and Sick Units

• NRI/PIO/OCB allowed up to 100% of new issue of companies
• Restriction in R/O OCBs
• Lock-in period of three years and ceiling of 16% on repat of profits
• Up to 100% permitted in new issues of sick units for revival
• Appeal to RBI ECD co in form PSU)
• Note: Citizens of Pakistan, Bangladesh (and Sri Lanka in some cases) not eligible for any facilities given to NRI/PIOs

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Transfer of Shares

• From non-res to non res
• RBI's gen perm available
• However, if transferor is NRI/PIO/OCB and transferee is non res (not NRI/PIO/OCB) approval from SIA/FIPB and RBI is necessary
• Transfer/sale from res to non-res
• Requires Government of India approval and the RBI approval
• RBI to ensure price - not less than market related/ calculated in T/O CCI guidelines
• From non-res to res
• Prior approval from RBI
• Form ts 1
• Gen perm if sold on stock exchange

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Investments Other Than Shares/Debs

• Schedule 5 Of Fema 20

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NRI/OCB - On Repat Basis

• Government Securities
• PSU Bonds
• PSE Shares Disinvested by GOI

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On Non-Repat Basis

• No ceiling
• Government Securities, MMF's, TRSY Bills, NSC, etc.