A business example
An Indian company proposes to issue shares to an overseas investor.
Transaction facts
Identify the investor, instrument, sector and proposed rights.
Permissibility review
Assess the applicable investment route and any restrictions or approvals.
Completion and records
Align receipt, issue documents and the reporting process.
What this shows
Receiving foreign money is not the only step. The underlying transaction must be assessed before it is treated as a compliant investment.
What it is often confused with
A foreign remittance is not automatically permitted FDI; instrument, sector, investor and route matter.
What to look at in your business
Use the linked guide to assess the transaction and related reporting.
Context and further reading
RBI Master Direction on Foreign Investment in India, paragraphs 2.8–2.9 distinguishes direct from portfolio investment. An existing FDI holding remains FDI if it later falls below 10%; investment permissions and reporting remain separate questions. Reference checked 2 October 2026.
This entry explains the business term. The related guide below provides the next layer of context; any applicable legal test depends on the transaction and relevant period.
Kosha.Services · Updated 2 October 2026