1) Investment in listed/unlisted companies under Foreign Direct Investment

A foreign individual can make investments in Indian companies under FDI policy up to the maximum FDI allowed in the sector in which the investee company is operating. FDI means investment in capital instruments. In the case of listed companies, FDI shall be 10% or more of the post-issue paid-up equity capital of the company.

2) Investment in LLPs under Foreign Direct Investment

LLPs can accept FDI only if they are operating in sectors in which 100% FDI under automatic route is allowed by the government.

3) Investment in partnership firms/sole proprietorships

Investments by NRIs in partnership firms/sole proprietorships can be either on a repatriable basis or on a non-repatriable basis. Investment on a repatriation basis means an investment, the sale/ maturity proceeds of which are, net of taxes, eligible to be repatriated (sent back to their own country) out of India. Investment on a non-repatriation basis means its funds cannot be transferred back to the NRIs country of residence nor can they be converted to any foreign currency. Investment by non-residents other than NRIs can be done after taking approval of the RBI. 

4) Investment under Foreign Portfolio Investment

Investment under FPI can be done after getting registered with SEBI. FPI under SEBI regulations can be made in listed securities of a body corporate, mutual funds, CIS, derivatives traded on a recognized stock exchange, REITs, INVITs, category III AIFs, IDRs, debt securities permitted by RBI.

5) ADRs/GDRs

ADRs/GDRs are issued by foreign banks in any foreign jurisdiction on the basis of underlying shares issued by an Indian company. Investment in ADRs/GDRs falls under the automatic route and does not require any approval.

6) Foreign Venture Capital Investment

FVCI means an investment made through foreign venture capital investors registered with SEBI. They pool investment from foreign investors and invest them as per the SEBI regulations.

Investment by FVCI is done in venture capital funds, venture capital undertaking, and listed companies.

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