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Home / RBI Compliance / FDI Compliance
Last updated: 2 October 2026
Before a foreign investor puts money into your company, the investment has to fit the FDI policy — the right route, sectoral cap, pricing and instrument. Expertvuw’s team checks each of these, coordinates the valuation and AD bank process, and completes RBI reporting after allotment.
Foreign direct investment (FDI) into Indian companies is governed by FEMA, the FEM (Non-debt Instruments) Rules, 2019 and the Consolidated FDI Policy. Most sectors allow FDI under the automatic route, with no prior approval, up to the sectoral cap. Some sectors need government approval, some have conditions such as minimum capitalisation or lock-in, and a few are prohibited. Investment from entities of countries sharing a land border with India needs government approval.
Shares issued to a non-resident must be priced at or above fair value, determined using an internationally accepted pricing method by a Chartered Accountant, SEBI-registered merchant banker or practising cost accountant. Funds must come through banking channels, and the AD bank completes KYC of the foreign investor.
After allotment, the company reports the investment in Form FC-GPR on RBI’s FIRMS portal within 30 days. Where a foreign-owned or controlled company invests further in India, downstream investment rules and Form DI apply.
Basis: FEMA, 1999; FEM (Non-debt Instruments) Rules, 2019; Consolidated FDI Policy (DPIIT); Press Note 3 (2020); RBI Master Direction – Foreign Investment in India. Last updated: 27 September 2026.
Most sectors allow FDI without prior approval, up to the sectoral cap.
Some sectors, and investors from countries sharing a land border with India, need prior government approval.
Equity shares, fully and mandatorily convertible preference shares and debentures, and share warrants.
Issue price to non-residents must not be less than fair value.
FC-GPR is filed within 30 days of allotment on FIRMS.
Shares should be allotted within 60 days of receiving funds, or the money refunded.
FDI errors are expensive to fix after the money has come in.
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FDI compliance connects with these services.
Step-by-step FC-GPR filing on FIRMS.
Pricing valuation for share issues.
Ongoing FEMA reporting for companies.
Setting up an Indian entity for foreign businesses.
Confirm route, cap and conditions.
Agree instrument and terms.
Coordinate a fair value report.
Funds received through banking channels with KYC.
Allot shares within 60 days and file with MCA.
File FC-GPR on FIRMS within 30 days.
FDI brings continuing obligations.
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Not in most sectors. FDI up to the sectoral cap is allowed under the automatic route, but some sectors and investors from countries sharing a land border with India need approval.
Not less than fair value, determined by a Chartered Accountant, SEBI-registered merchant banker or practising cost accountant using an internationally accepted method.
Within 60 days of receiving the funds; otherwise the money must be refunded within 15 days after that.
Within 30 days from the date of allotment.
A form reporting downstream investment by an Indian entity that is owned or controlled by non-residents.
ACS – Director, Expertvuw Management Pvt Ltd
FEMA filings are prepared by Expertvuw’s team. Certificates required by the AD bank or RBI are issued by independent practising professionals, and representation before RBI or the Directorate of Enforcement is made by authorised professionals or advocates.