1. What are the procedures for receiving foreign direct investment in an Indian company?
There are mainly 2 procedures for receiving foreign direct investment in an Indian company namely:
Automatic: In this scenario, FDI is allowed for the investment without the prior approval of the government including the RBI in all activities considered in FDI policy.
Government: FDI requires prior approval of the government including RBI, FIPB, Department of Economic Affairs, and Ministry of Finance.
2. Which are the sectors where FDI investment is not allowed in India?
The sectors where FDI activities are prohibited for both government and automatic routes are as follows:
● Atomic Energy
● Lottery Business
● Gambling and Betting
● Chit fund business
● Nidhi Company
● TDRs
● Cigar products