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Foreign Investments (FI)
The investment through equity instruments by a person resident outside India in an unlisted Indian company, or in 10% 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 10% 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 an Indian company through equity instruments by a person residing outside India are governed by foreign exchange management (non-debt instruments) rules, 2019.
We, at Axis Bank, cater to your needs on foreign investments (‘FI’) providing services, which include handling inward remittance towards foreign investment, repatriation of funds, regulatory reporting, etc.
Features & Benefits
Benefits of banking with us and categories of foreign investments as per regulations
Expert assistance
Dedicated & experienced product expert to assist in advisory, solutions and resolution of issues.
Document pre-scrutiny
Assistance in pre-scrutiny of documents/forms before actual submission.
Regulatory approvals
Assistance in the arrangement of approvals from regulatory authorities.
NOC issuance
Issuance of no objection certificate (NOC) for creation of charge on assets.
Categories of Foreign Investment as per regulation:
- Foreign Direct Investment (‘FDI’)
- Foreign Portfolio Investment (‘FPI’)
- Portfolio Investment by Non-Resident Indians (‘NRIs’)
- Investments by NRIs - Non-Repatriable basis
- Investments into Limited Liability Partnership Firm (‘LLP’)
- Foreign Venture Capital route (‘FVCI’)
- Investment into Investment Vehicles (viz., AIF, REITs, InvITs)
- Indian Depository Receipts (‘IDRs’), Global Depository Receipts (‘GDRs’); American Deposit Receipts (‘ADRs’) route
Eligibility & Documentation
- Latest FDI policy link
- For documentation, please reach out to your nearest branch or contact your relationship manager for further information.
How it works?
Investments are categorised into permissible and prohibited modes. Investments which are classified into permissible modes can be processed by following routes:
- 01
Automatic route: By this route, FDI is allowed without prior approval by the Government or RBI.
- 02
Government/approval route: In this scenario, prior approval from the Government of India/regulator is required for undertaking FDI.
Modes through which a foreign investor can invest in India -
- 01
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
- 01
Advisory/Solutioning at Pre-deal Stage
- 02
Simplified documentation.
- 03
Centralization of remittance process to facilitate faster TAT in processing the transaction.
- 04
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
- 01
Entity Master Creation (This is an one time activity to be done by Investee Company)
- 02
Business User Registration (This is pre requisite for filing Single Master forms with specific AD Banks)
- 03
Filing of various forms on Single Master Form (SMF)
Disclaimer
Product offering is subject to certain eligibility criteria as per Bank's internal policy and is subject to Bank's discretion.
