1. Joint Venture

‘Joint Venture’ (JV) means an Indian entity incorporated in accordance with the laws and regulations in India in whose capital a non-resident entity makes an investment.

For setting up a joint venture, a non-resident entity enters into a joint venture agreement with an Indian entity. The joint venture is only possible in sectors in which FDI is allowed.

Joint ventures can be set up in the form of a company or an LLP.

Investments by non-resident entities in joint ventures can be up to maximum FDI permitted in that sector.

2. Wholly Owned Subsidiary

The wholly-owned subsidiary can be set up by a foreign company that is engaged in a sector in which 100% FDI is allowed.

Wholly owned subsidiaries can only be set up in the form of a company registered under the Companies Act.

3. American Depository Receipts/Global Depository Receipts

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.

4. REITs/INVITs/AIFs

REITs/INVITs are set up in the form of trusts and are registered with SEBI. They issue units to investors, whether Indian or foreign, and make investments in other companies or entities.

AIFs are investment vehicles that collect investments from investors on a private placement basis and invest them as per their schemes. Investment in AIFs is generally of a higher amount.

5. Foreign Portfolio Investment

‘Foreign Portfolio Investment’ means any investment made by a person resident outside India through capital instruments where such investment is less than ten percent of the post issue paid-up share capital on a fully diluted basis of a listed Indian company or less than ten percent of the paid-up value of each series of the capital instrument of a listed Indian company.

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. So, What is Instade Alogs is all about? It is an audio learning and discussion forum enriching our listeners to get all the valuable insights related to the professional world. You can connect with us on Linkedin | Twitter | Facebook | Instagram

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