A Note on Foreign Direct Investment (FDI)

    All Indian Missions/Posts including High Commission of India,  Mahe have been authorized to accept FDI application from investors. No fees are required to be paid by investors to the High Commission. The High Commission  will issue a formal receipt for any application received from investors. Following is procedure relating to Foreign Direct Investment.

1.  Procedure For Automatic Route

The proposals for approval under the automatic route are to be made to the Reserve Bank of India in the FC (RBI) form. In a major drive to simplify procedures for foreign direct investment under the "Automatic route", RBI has given permission to Indian Companies to accept investment under this route without obtaining prior approval from Reserve Bank of India. However, investors will have to file the required documents with the concerned Regional Office of the RBI within 30 days after issue of shares to foreign investors. This facility is available to NRI/OCB investment also.

2.  Procedure for Government approval

(a) All other proposals for foreign investment, including NRI/OCB investment in EOU/EPZ/STP/EHTP units, which do not fulfill any or all the parameters prescribed for automatic approval, are considered for approval on merits by the Government. All such proposals are considered for approval by the Foreign Investment Promotion Board (FIPB). The FIPB also grants composite investment/foreign technical collaboration. For details please contact Economic Wing of H.C.I. Mahe.

(b)    Applications to FIPB for approval of foreign investment should be submitted in Form FC-IL (FC-IL Application ) Plain paper application carrying all relevant details are also accepted. No fee is payable. The following information should form part of the proposal submitted to FIPB.

     i) Whether the applicant has had or has any previous financial/ technical  collaboration or trade mark agreement in India in the same or allied field  for which approval has been sought?; and

     ii) If so, details thereof and the justification for proposing the new venture/    technical collaboration ( including trade mark).           

(c)  RBI has granted general permission under Foreign Exchange Regulation Act (FERA) in respect of proposals approved by the Government. Indian Companies getting foreign investment approval through FIPB route do not require any further clearance from RBI for the purpose of receiving inward remittance and issue of shares to the foreign investors. Such

companies are, however, required to file the required document with the concerned Regional Offices of the RBI within 30 days after issue of shares to the foreign investors.

(d)  Similarly, for inward remittance and issue of shares to NRI/OCB upto 100 per cent equity also, prior permission of RBI is not required. These companies have to file the required documents with the concerned Regional Offices of the RBI within 30 days after the issue of shares to NRI/OCBs.