India: Inward/ Foreign Investment

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Article
Limited Liability Partnership: A Case For Calibrated Liberalisation Of Foreign Investment
Foreign investment in Indian limited liability partnerships faces significant restrictions compared to companies, requiring both 100% FDI under automatic route and no performance conditions. This asymmetrical treatment excludes LLPs from sectors like construction and industrial parks, despite their structural capability to meet operational requirements. The article examines whether these blanket restrictions serve legitimate regulatory purposes or unnecessarily curtail capital access for a flexible business
India Commercial
DL
DSK Legal
Article
Press Note No. 3 (2026 Series)-Liberalization Of FDI In E-Commerce Sector
The Department for Promotion of Industry and Internal Trade (“DPIIT”) issued Press Note No. 3 (2026 Series) on 23 July 2026 introducing a calibrated liberalisation to the Consolidated FDI Policy applicable to the e-commerce sector. The amendment does not overhaul the existing framework rather it carves out a narrow export-focused categories with the objective of enabling Indian manufacturers to access global markets through foreign-funded e-commerce platforms and supporting the government's broader export-promotion goals.
India Government
CP
Corporate Professionals
Article
Decoding FEMA Residency:Why The 182 Day Requirement Cannot Be Read In Isolation
The determination of whether a person qualifies as a “person resident in India” under the Foreign Exchange Management Act, 1999 (“FEMA”) is fundamental to it’s regulatory framework. Residential status determines whether a person is governed by the regulatory regime applicable to residents or by the restrictions applicable to persons resident outside India in relation to foreign investment, acquisition of immovable property, capital account transactions, and the establishment of a place of business in India.
India Finance
SA
Shardul Amarchand Mangaldas & Co
Article
Widening The Gate Of Indian Economy: Key Changes Under The Foreign Exchange Management (Non-Debt Instruments) (Third Amendment) Rules, 2026
India's Ministry of Finance has introduced sweeping amendments to foreign investment regulations, fundamentally reshaping who can invest in Indian listed securities and how capital flows into the country's markets. These changes expand investor eligibility beyond traditional categories while implementing new safeguards for cross-border investments, particularly from neighboring countries.
India Finance
LS
Lakshmikumaran & Sridharan
Article
India Opens Inventory-Based E-Commerce To FDI For Exports
On 23 July 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) issued Press Note No. 3 (2026 Series) (PN3), introducing a significant but targeted relaxation to India’s foreign direct investment (FDI) framework for the e-commerce sector. Under the existing framework, FDI is permitted in business-to-business (B2B) e-commerce and the marketplace model of e-commerce. However, it is not permitted in the inventory-based business-to-consumer (B2C) model, where the e-commerce entity owns the inventory and sells directly to consumers.
India Government
KC
Khaitan & Co LLP
Article
RBI Amends Framework For Special Non-Resident Rupee Accounts
The Reserve Bank of India has significantly liberalised the framework for Special Non-Resident Rupee Accounts, removing the requirement for account holders to demonstrate business interest in India and expanding operational flexibility. These amendments to the Foreign Exchange Management (Deposit) Regulations, 2016 also permit SNRR Accounts to be opened with Authorised Dealer Banks in International Financial Services Centres and streamline transfer mechanisms between various non-resident account types.
India Finance
AP
AZB & Partners
Article
SEBI Introduces Framework For Net Settlement Of Funds For Transactions Done By FPIs In Cash Market
SEBI has introduced a new framework allowing net settlement of funds for Foreign Portfolio Investors (FPIs) in cash market transactions, addressing liquidity challenges and operational inefficiencies that arise from the current gross settlement requirement. This regulatory change aims to reduce funding costs and streamline operations, particularly during periods of high trading activity such as index rebalancing.
India Finance
AP
AZB & Partners
Article
RBI Amends Mode Of Payment And Reporting Requirements For Non-Debt Instruments
The Reserve Bank of India has introduced significant amendments to the Foreign Exchange Management Regulations, fundamentally restructuring how Non-Resident Indians and Overseas Citizens of India can invest in Indian markets. These changes modify payment mechanisms, remittance frameworks, and reporting requirements for investments made on a repatriation basis. The amendments also extend to equity shares of Indian companies listed on International Exchanges, introducing new flexibility in payment options.
India Finance
AP
AZB & Partners
Article
FOCC, CSR, And FCRA: Too Foreign To Ignore, Too Indian To Exclude
Foreign owned or controlled companies in India occupy a unique regulatory position—treated as both resident and non-resident depending on the context. When these companies attempt to fulfill their corporate social responsibility obligations by funding Indian non-profits, a complex question emerges: does their contribution constitute 'foreign contribution' under India's Foreign Contribution Regulation Act, potentially restricting which organizations can receive their CSR funds?
India Commercial
DL
DSK Legal
Article
EXEMPTIONS GRANTED TO FIIs AND BIS: FACILITATING FOREIGN CAPITAL INFLOW
The Indian government has introduced sweeping tax exemptions on interest and capital gains from Government Securities for Foreign Institutional Investors and the Bank for International Settlements, effective retrospectively from April 2026. As the rupee plummets past the 97-mark against the US dollar and foreign portfolio investments hemorrhage approximately INR 2.5 lakh crore, these reforms aim to stabilize currency pressures and restore investor confidence in India's debt markets.
India Tax
I
CMS INDUSLAW
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