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Connecticut Outline of Considerations for Transactions Involving Foreign Investors

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This form is an outline of issues that the due diligence team should consider when determining the feasibility of the proposed transaction.

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FAQ

The present policy prohibits FDI in the following sectors:Gambling and Betting.Lottery business (including government/ private lottery, online lotteries etc)Activities /sectors not open to private sector investment (eg, atomic energy /railways)Retails trading (expect single-brand product retailing)More items...

Restrictions on foreign ownership are the most obvious barriers to inward FDI. They typically take the form of limiting the share of companies' equity capital in a target sector that non-residents are allowed to hold, e.g. to less than 50 per cent, or even prohibit any foreign ownership.

This law's main objective is to increase the flow of foreign exchange in India. Now , under this law, you can bring foreign currency in India without any legal barrier . According to section 3 of FEMA 2000," only authorized person under the govt. terms can deal in foreign exchange in India.

The main objective for which FEMA was introduced in India was to facilitate external trade and payments. In addition to this, FEMA was also formulated to assist orderly development and maintenance of the Indian forex market.

Any person can sell or draw foreign exchange to or from an authorised dealer (if such sale or withdrawal is a current account transaction) except for certain prohibited transactions like remittance of lottery winnings, remittance of interest income on funds held in Non-Resident Special Rupee (NRSR) account scheme, etc.

The Foreign Exchange Management Act, 1999 (FEMA), is an Act of the Parliament of India "to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India".

Disadvantages of Foreign Direct Investment in IndiaDisappearance of cottage and small scale industries:Contribution to the pollution:Exchange crisis:Cultural erosion:Political corruption:Inflation in the Economy:Trade Deficit:World Bank and lMF Aid:More items...

Here are a few measures to attract FDI and what to prepare:Documentation of how your business could work under a foreign country's government regulations. A list of any potential setbacks and how your business plans to rectify them. Potential profits an investor could gain by forming a partnership.

FDI Regulations- Reporting RequirementsAdvance Remittance Form (ARF)Foreign Currency Gross Provisional Return (FC-GPR)Annual Return on Foreign Liabilities and Assets (FLA)Foreign Currency Transfer of Shares (FCTRS)Employees' Stock Option (ESOP)Depository Receipt Return (DRR)LLP (I)LLP (II)More items...

Often suggested reasons for foreign ownership restrictions are that host country governments use them to increase economic rents and to maintain local control of resources.

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Connecticut Outline of Considerations for Transactions Involving Foreign Investors