General Condition of Foreign Direct Investment FDI

Posted on 03-07-2016        By ADMIN

 General Condition of Foreign DirectInvestment FDI

Department of IndustrialPolicy and PromotionMinistry of Commerce andIndustry Government ofIndia come with circular forconsolidated policy of FDI.This consolidated policyeffective from 7th June,2016.Consolidated FDI Policy Circular is a policyframework on Foreign Direct Investment, whichconsolidates all Press Notes/PressReleases/Clarifications/ Circulars issued by DIPP,which are in force. The first Circular was issued inMarch, 2010, which has been updatedperiodically. The last such Circular was releasedon 12.05.2015. ‘Consolidated FDI Policy Circularof 2016’ is the ninth edition of the series.FDI Policy Circular, 2016 has been made simplerand investor friendly; and will serve as a readyreference for foreign investors on variousprovisions of the FDI policy.

Meaning of FDI: FDI means investment by below mentioned the capital of an IndianCompany:-• Non- resident entity• Person resident outside India 

Type of Securities Issued under FDI Policy: Equity Shares: The equity shares issued in accordance with the provisions of the CompaniesAct, as applicable, shall include equity shares that have been partly paid Preference Shares: Fully, compulsorily & mandatorily convertible preference sharesPreference shares shall be required to be fully paid, and should be mandatorily and fullyconvertible. Debenture: Fully, compulsorily & mandatorily convertible Debentures.Debentures shall be required to be fully paid, and should be mandatorily and fullyconvertible. Warrant: Fully, compulsorily & mandatorily convertible Warrant.   

Companies act 2013 free notes

company law best notes

Best notes for FDI

Author - CS Divesh Goyal

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