Project :- Research on Setting up a Fund investing in India

Category :- Our Work

Date :- Wednesday, December 31, 2014

Investments  in India are regulated by a number of rules regarding ownership of enterprises, origin and amount of funds, sectors of investments, and repatriation of profits among others. Investments can be made by non-residents in the equity shares/fully, compulsorily and mandatorily convertible debentures/ fully, compulsorily and mandatorily convertible preference shares of an Indian company, through two routes; the Automatic Route and the Government Route.

Under the Automatic Route, the investor does not require any approval from the RBI or Government of India for the investment. Under the Government Route, prior approval of the Government of India through Foreign Investment Promotion Board (FIPB) is required. Proposals for foreign investment under Government route are considered by the Foreign Investment Promotion Board (FIPB) in Department of Economic Affairs (DEA), Ministry of Finance.

M2i’s research delved into the following:

Constitution of the Fund

  • Registration process
  • Capitalization requirements
  • Taxation
  • Permitted sectors for investment
  • Exit options and procedures
  • Summary of Pros and Cons


Location of the Fund

  • Legal forms
  • Capitalization requirements
  • Ownership restrictions
  • Taxation
  • FDI/FII implications
  • Exit options and procedures
  • Summary of pros and cons
  • Procedural requirements


Administration and Management of the Fund

  • Geographical considerations
  • Legal form
  • Tax implications
  • Procedural requirements

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