May 2017 \ News \ Column
New FDI Road To Make In India

As a part of economic liberalization, India brought forth economic reforms during 1966 and 1985 in the crude form and 1991 in relatively refined form.

Prohibited  Sector: The following  are the sector on which FDI is prohibited

a)    Lottery Business including Government/private lottery, online, lotteries, etc.

b)    Gambling and betting including casinos etc.

c)    Chit Funds

d)    Nidhi Company

e)    Trading in Transferable Development Rights (TDRs)

f)    Real Estate Business or Construction of Farm Housesg)    Manufacturing of cigars, cheroots, cigarillos and cigarettes, of Tobacco or or tobacco substitutes.

h)    Activities / sectors  not open to private  sector investment i.e. (i) atomic Energy and (ii) Railway operations (other than permitted in para 5.2.) 


Following are the instruments in which an investor can invest in India.

1)    Equity Shares

2)    Preference Shares / debentures

3)    Acquisition of Warrant

4)    Partly Paid shares

5)    Foreign Currency convertible Bond Depository Receipts.

Tags: Mr K K Anand