Overseas Direct Investment means an investment made by an Indian Party in Joint Ventures (JV) or Wholly Owned Subsidiaries (WOS) outside India either by Automatic Route or Approval Route. Direct investment outside India i.e. ODI Compliance in India is governed by Foreign Exchange Management (FEMA Regulations).
Routes for Overseas Direct Investment
Just like the Foreign Director Investment, Overseas Direct Investment can be done via two routes
1. Automatic Route
- Here no prior approval from the RBI is required.
- The ODI via Automatic Route is processed by Authorized Dealers Bank.
2. Approval Route
Prohibited Activities under Overseas Direct Investment
- An Indian Individual / Party can not make Overseas Direct Investments in Real estate, Banking Business.
- The ODI can not be made for dealing in Financial products linked to INR without specific approval of RBI
- Note: Buying and selling real estate and dealing in TDR (does not include township, residential and commercial premises, roads and bridges)
Why Ebizfiling for getting services of Foreign Direct Investment through Automatic and direct route?
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