LIBERALIZED APPROACH
The RBI issues licence to banks and other institutions to act as authorized dealers in the foreign exchange market. the RBI has also permitted residents to hold up to USD 2,000. residents can also open foreign currency accounts in India and credit exchange receipts into it.
FOREIGN INVESTMENT
Foreign investment comes to India in various forms.
1. The RBI has permitted foreign investment in almost all sectors. foreign companies are permitted to set up 100% subsides in India.
2. No prior approval is needed from Government or RBI for Non residents investing in India.
3. Foreign institutional investors are allowed to invest in all equity securities traded in the primary and secondary market.
4. FII are allowed to invest in government of India treasury bills and dated securities, corporate debt instruments and in mutual funds.
5. The government allows Indian companies to issue Global depository receipts (GDR) and in American depository receipts (ADR) to foreign investors.
INDIAN INVESTMENT BOARD
Any Indian entity can make investment in an overseas joint venture or in a wholly owned subsidy.
EXTERNAL COMMERCIAL BORROWING
Indian companies are allowed to raise external commercial borrowing including commercial bank loans, buyers credit and security instruments. Foreign Currency Convertible Bonds (FCCB) and Foreign Currency Exchangeable bonds are also governed by the ECB guidelines.
LIBERALIZED REMITTANCE SCHEME
The RBI has allowed residents individuals to freely abroad up to USD 200000 per financial year for any purpose.
CURRENCY TRADE
Currency trades are permitted via BSE, NSE, MCX and regulated by both RBI and SEBI
INDIAN DEPOSITORY RECEIPTS
India has allowed eligible companies resident outside india to issue Indian Depository Receipts through domestic repository.
The RBI issues licence to banks and other institutions to act as authorized dealers in the foreign exchange market. the RBI has also permitted residents to hold up to USD 2,000. residents can also open foreign currency accounts in India and credit exchange receipts into it.
FOREIGN INVESTMENT
Foreign investment comes to India in various forms.
1. The RBI has permitted foreign investment in almost all sectors. foreign companies are permitted to set up 100% subsides in India.
2. No prior approval is needed from Government or RBI for Non residents investing in India.
3. Foreign institutional investors are allowed to invest in all equity securities traded in the primary and secondary market.
4. FII are allowed to invest in government of India treasury bills and dated securities, corporate debt instruments and in mutual funds.
5. The government allows Indian companies to issue Global depository receipts (GDR) and in American depository receipts (ADR) to foreign investors.
INDIAN INVESTMENT BOARD
Any Indian entity can make investment in an overseas joint venture or in a wholly owned subsidy.
EXTERNAL COMMERCIAL BORROWING
Indian companies are allowed to raise external commercial borrowing including commercial bank loans, buyers credit and security instruments. Foreign Currency Convertible Bonds (FCCB) and Foreign Currency Exchangeable bonds are also governed by the ECB guidelines.
LIBERALIZED REMITTANCE SCHEME
The RBI has allowed residents individuals to freely abroad up to USD 200000 per financial year for any purpose.
CURRENCY TRADE
Currency trades are permitted via BSE, NSE, MCX and regulated by both RBI and SEBI
INDIAN DEPOSITORY RECEIPTS
India has allowed eligible companies resident outside india to issue Indian Depository Receipts through domestic repository.
