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Regulatory Framework · India

Foreign Investment Lawyer in India

Every dollar of foreign investment in India has a regulatory path. Know yours before you commit.

300+

Foreign Investment Transactions

50+

Jurisdictions Covered

100+

Compounding Applications

Understanding the Regulatory Framework

Foreign investment in India takes multiple forms — Foreign Direct Investment (FDI) by non-residents in Indian companies, Foreign Portfolio Investment (FPI) in listed securities, NRI and OCI investments under Schedule 4 of FEMA, and Overseas Direct Investment (ODI) by Indian residents in foreign entities. Each category has a distinct regulatory framework, different reporting requirements, and different restrictions. A poorly structured investment can create FEMA violations that are difficult and expensive to regularise. Corpus Juris Legal advises foreign investors, NRIs, and their Indian investee companies across all categories of foreign investment.

01

FDI structuring — equity, CCPS, CCDs, preference shares

02

FPI registration and compliance — SEBI FPI Regulations 2019

03

NRI investment under FEMA Schedule 4 — repatriable and non-repatriable

04

OCI (Overseas Citizen of India) investment advisory

05

ODI — Indian company investing abroad, regulatory requirements

06

RBI reporting and regularisation of past FEMA violations

Frequently Asked Questions

What is the difference between FDI and FPI in India?+

FDI involves investment in unlisted companies or acquisition of 10% or more in listed companies with the intent of long-term business participation. FPI involves portfolio investment in listed securities (equity, bonds) below the 10% threshold without management control intent. Different FEMA regulations, reporting requirements, and restrictions apply to each.

Can an NRI invest in an Indian private limited company?+

Yes. NRIs can invest in Indian companies under Schedule 4 of the FEMA Non-Debt Regulations, either on a repatriable basis (through NRE accounts) or non-repatriable basis (NRO accounts). The investment is subject to sectoral caps and conditions applicable to FDI. Sectors like agriculture and real estate have specific NRI investment restrictions.

What happens if a foreign investment is made in a prohibited sector?+

Investments made in sectors where FDI is prohibited (gambling, lottery, certain agricultural activities, real estate trading) constitute a FEMA violation. The investment must be either divested or regularised through the Enforcement Directorate/RBI compounding route. Prevention through proper sector classification analysis before investment is critical.

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