Regulatory Framework · India
FDI Legal Advisory in India
Foreign investment in India needs a lawyer who reads the FEMA manual daily.
USD 70Bn+
India Annual FDI
200+
FDI Transactions Advised
50+
Sectors Covered
Understanding the Regulatory Framework
India received over USD 70 billion in FDI in recent years, but the regulatory path from term sheet to closed investment is complex. FEMA 1999, FEMA Non-Debt Regulations, RBI Master Directions, and sector-specific policies create a framework requiring expert navigation. Pricing regulations, downstream investment rules, sectoral caps, and approval requirements vary by sector and investor nationality. An error in structure — wrong instrument, wrong sector classification, or missed RBI reporting — can result in compounding penalties. Corpus Juris Legal advises foreign investors and Indian investee companies on compliant FDI structures from entry through exit.
FDI structuring — automatic route vs. government approval route
Sectoral cap analysis and prohibited sector advisory
Pricing compliance under FEMA — FMV, DCF and other valuation methods
RBI reporting: Form FC-GPR, FC-TRS, FLA Return filings
Downstream investment structuring and compliance
FDI in regulated sectors: banking, insurance, retail, defence
Frequently Asked Questions
What is the difference between automatic route and government approval route?+
Under the automatic route, foreign investors require no prior government or RBI approval — investment can be made directly with post-facto RBI reporting. Under the government approval route, prior approval from the competent authority (usually DPIIT or concerned ministry) is mandatory. The route depends on sector and investment percentage.
What is the pricing requirement for issuing shares to a foreign investor?+
For unlisted companies, shares must be issued at fair value per an internationally accepted pricing methodology (DCF or NAV). For listed companies, SEBI-determined price applies. Valuation must be certified by a SEBI-registered merchant banker or practising Chartered Accountant.
What RBI filings are required after a foreign investment?+
The investee company must file Form FC-GPR with RBI within 30 days of issuing shares. Annual FLA Returns must be filed by July 15 each year. Share transfers between foreign and Indian residents require Form FC-TRS. Delays attract compounding penalties.
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