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Amit Soni (Proprietor)     17 July 2011

A summary: How to bring Foreign Investment

 

If the business that you are going to start, falls in the automatic route of investment in India, Than you have to notify the same within 30 days of receipt of the same. Procedure for the investment through Automatic routes is as follows:

"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 are required to notify the concerned Regional Offices of RBI of receipt "

 

All the businesses excepting the below falls in automatic route:

LIST OF INDUSTRIES FOR WHICH INDUSTRIAL LICENSING IS COMPULSORY under Industries 

(Development & Regulation) Act, 1951 

1. Distillation and brewing of alcoholic drinks.  

2. Cigars and cigarettes of tobacco and manufactured tobacco substitutes.  

3. Electronic Aerospace and defence equipment: all types.  

4. Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and 

matches.  

5. Hazardous chemicals.  

a. Hydrocyanic acid and its derivatives 

b. Phosgene and its derivatives 

c. Isocyanates and di-isocyanates of hydrocarbon, not elsewhere specified (example: 

Methyl Isocyanate) 

6. Drugs and Pharmaceuticals (according to modified Drug Policy issued in September, 1994 

and subsequently amended in February, 1999)  

Note: Manufacture of SSI reserved items by other industrial undertakings and location of industrial 

undertakings in relaxation of the notified locational policy will attract compulsory licensing.   

of inward remittances within 30 days of such receipt and 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. 



Learning

 1 Replies

Puja (DM)     12 August 2011

Thanks a lot for the excellent advice. It helped a lot. We have logged complain with ICICI bank, vendor as well as with Consumer Forum. Awaiting bank's response now.


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