Foreign Investment

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Dear Members,

I have the following querry in relation to investment by a foreigner in an Indian Private company:

Mr X being a foreigner who was born in  India but has citizenship of UK wants to invest in an Indian foreign company can any1 help me out the limit ofg his investment along with related provisions of FEMA Regulation

The company has the object of providing Server maintaince services to the banks.

 

Hopes of early reply

Replies (5)

The first thing which needs to be checked here is the intention of the NRI to invets the funds in India on repatriation basis or on non-reptriation basis. The whole scheme of FDI approvals and filing of forms with RBI will depend on that.

Dear Sir,

I have an idea for non-repertiable base of investment where the investor cannot take backthe funds outside India and as per my knpwldge the stake holding under this option is allowed to 100% also can such NRI transfer the stake under non-repritable option to other NOn-Resident

but i am more concerned about the repertiable option? as there is a general limit of investment allowed upto 24% of the totla stake i n the company

please reply and correct me if m wrong in the intreperetation for NON-repritable option

Your interpretation about repatriable portion is not correct .The same depends on the industry/sector in which the foreigner wants to have stake.Kindly specify the industry/sector in which the foreigner wants to have stake .

Dera Sir,

Thanks for your valuable reply

the company in which the foreigner wants to invest is in the service provision of CBS server of banks maintaince on behalf of another UK based service provider

As far as I am able to understand the scope of work the same is allowed on 100% basis.

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