How Does FDI Work In India

“Foreign Direct Investments” refers to equity investments in unlisted Indian companies by foreigners, or to ten percent or more of the fully diluted equity capital of listed Indian companies by foreign investors. A foreign investor’s stake in a company is the difference between foreign direct investment and foreign portfolio investment. A “Foreign Portfolio Investment” refers to an investment made by a resident outside India through equity instruments where the investment does not exceed 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 value of […]