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• Brief Background
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Brief Background
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Genesis of Exchange Control Regulations
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Genesis of Exchange Control Regulations contd…
• Primary Purpose:
– Conserve foreign exchange
– Protect Indian industry and economy
• Relaxations:
– Fully convertible on current account
– Capital convertibility norms liberalised
• Way Forward:
– Complete deregulation
– Full capital account convertibility
– Removal of sectoral caps
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Inbound Investment in Real Estate
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Position under FERA
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Position under FERA contd…
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Position under FEMA
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Classification of Foreign Investment
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Foreign Direct investment by any Person Resident Outside
India in Real Estate Development Activity
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
TIS Regulations
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Press Note 4 (2001 series) & Press Note 3 (2002 Series)
• 100% FDI for development of integrated townships with prior govt approval
• Foreign company to invest in Indian Company
• Core business of the company seeking to make investment should be
integrated township development with a record of successful execution of
such projects elsewhere
• Minimum area to be developed by such a company should be 100 acres
OR minimum of two thousand dwelling units for about ten thousand
population
• Minimum capitalisation norm (funds required to be brought in upfront)
– US$ 10 million for a wholly owned subsidiary
– US$ 5 million for joint ventures with Indian partner/s.
• Minimum lock-in period of 3 years from completion of minimum
capitalisation shall apply before repatriation of original investment
• Dividend may be repatriated
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Press Note 4 (2001 series) & Press Note 3 (2002 Series)
contd…
• Minimum of 50% of the integrated project development must be completed
within a period of five years from the date of possession of the first piece of
land
• Conditions regarding the use of land for commercial purposes, development
charges, external development charges and other charges as laid down in
Master Plan will have to be met as per planning norms and standards on
similar lines as those applicable to local investors
• Land with assembled area for peripheral services such as police stations,
milk booths as well as playgrounds and parks will be handed over free of
cost to the Government / local authority / agency as the case may be
• Developer will retain the lands for community services such as schools;
shopping complex; community centres; ration shop; hospital/ dispensary.
These services will be developed by developer himself and made
operational before the houses are occupied.
• The developer will ensure the norms and standards as applicable under
local laws / rules
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Press Note 2 – 2005 series
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Press Note 2 – 2005 series – conditions stipulated
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Press Note 2 – 2005 series – conditions stipulated
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Press Note 2 – 2005 series – Update
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Investment by NRIs in Housing and Real estate sector
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Investment by Foreign Venture Capital Investors
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Investment by Foreign Venture Capital Investors
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Summary
FII FVCI
– Shares of Listed Companies – Approval of RBI required
and pre-IPO offerings of Real- through SEBI
Estate Companies – Shares/ units of VCF
– Press Note 2 – not applicable – Shares of VCU
– Press Note 2 – not applicable
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Other Real Estate and Construction Related Areas
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Transfer of Shares
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Outbound Investment in Real Estate
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Direct Investment abroad by an Indian Party
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Direct Investment abroad by an Indian Party
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Direct Investment abroad by an Indian Party
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
Direct Investment abroad by an Indian Party - Exit Option
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA
THANK YOU
FEMA & FDI Regulations – Inbound and Outbound Investment Regulations - Rajesh Kapadia, FCA