Overview

The investment through equity instruments by a person resident outside India in an unlisted Indian company, or in ten per cent or more of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company, is known as ‘FDI’ or ‘Foreign Direct Investment’; whereas, if such investment is less than ten percent of the post issue paid-up share capital on a fully diluted basis of a listed Indian company is termed as ‘Foreign Portfolio Investment’ or ‘FPI’.

 

Such investments in Indian company through equity instrument by a person resident outside India are governed by Foreign Exchange Management (Non-Debt Instruments) Rules, 2019.

 

We, at Axis Bank to cater to your needs on Foreign Investments (‘FI’) provide services which includes handling inward remittance towards foreign investment, repatriation of funds, regulatory reporting, etc.

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Features &
Benefits

Features & Benefits

  • Categories of Foreign Investments as per Regulations :
  • imgForeign Direct Investment (‘FDI’)
  • imgForeign Portfolio Investment (‘FPI’)
  • imgPortfolio Investment by Non-Resident Indians (‘NRIs’)
  • imgInvestments by NRIs - Non-Repatriable basis
  • imgInvestments into Limited Liability Partnership Firm (‘LLP’)
  • imgForeign Venture Capital route (‘FVCI’)
  • imgInvestment into Investment Vehicles (viz., AIF, REITs, InvITs)
  • imgIndian Depository Receipts (‘IDRs’), Global Depository Receipts (‘GDRs’); American Deposit Receipts (‘ADRs’) route
  • Benefits of Banking with us :
  • imgDedicated & experienced product expert to assist in advisory, solutioning and resolution of issues.
  • imgAssistance in Pre-scrutiny of documents/Form before actual submission.
  • imgAssisstance in arrangement of approvals from regulatory authorities.
  • imgIssuance of No Objection Certificate for creation of charge on assets.

How it works?

Investments are categorized into permissible and prohibited mode. Investments which are classified into permissible mode can be processed by following routes :

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Automatic route: By this route, FDI is allowed without prior approval by Government or RBI.
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Government/Approval route: In this scenario, prior approval from Government of India/Regulator is required for undertaking FDI.

Modes through which a foreign investor can invest in India -

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The amount of consideration shall be paid as inward remittance from abroad through banking channels or out of funds held in NRE/FCNR(B)/Escrow account.

Steps for smooth processing of the transaction :

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Advisory/Solutioning at Pre-deal Stage
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Simplified documentation.
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Centralization of remittance process to facilitate faster TAT in processing the transaction.
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Help in seamless reporting of various forms on FIRMS portal.

Reporting under FDI

FDI into India requires reporting in specific forms in an online reporting system regulated by RBI. The reporting platform is hosted at firms.rbi.org.in

Steps for reporting includes

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Entity Master Creation (This is an one time activity to be done by Investee Company)
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Business User Registration (This is pre requisite for filing Single Master forms with specific AD Banks).
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Filing of various forms on Single Master Form (SMF).
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Fee &
Charges

Fee & Charges

SOC – Capital Account Transaction

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Eligibility &
Documentation

Eligibility & Documentation

  • Latest FDI Policy Link

     

  • For documentation - Please reach out to your nearest branch or contact your relationship manager for further information.

 

Related Products

 

Disclaimer:

Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion.