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ODI (Overseas Direct Investment) under FEMA refers to Indian entities investing in foreign joint ventures or wholly owned subsidiaries. It is governed by the Foreign Exchange Management Act (FEMA), 1999 and RBI guidelines. ODI allows Indian businesses to expand globally by investing in equity, debt, or extending guarantees abroad. Such investments can be made under the Automatic Route (within set limits) or Approval Route (with RBI approval). ODI covers sectors like manufacturing, services, energy, and more, promoting international business presence.
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ODI (Overseas Direct Investment) Under FEMA ODI (Overseas Direct Investment) under FEMA allows Indian entities to invest in foreign joint ventures or subsidiaries. It is regulated by FEMA, Act 1999 and RBI, through Automatic or Approval Routes. Proper compliance ensures global expansion while avoiding regulatory penalties. Types of Overseas Investment: Acquisition of unlisted foreign equity Investment in foreign Memorandum of Association Acquisition of equity shares in excess of 10% in listed foreign entity Issue of Bonus shares/Right issue, tender/bidding Capitalisation of dues Exchange of securities and Gift/inheritance Acquisition through Sweat equity/ESOP/employee benefits Merger, demerger, amalgamation or arrangement scheme At SKMC Global, our expert team offers comprehensive ODI advice tailored to each client’s regulatory, financial, and strategic needs. With seasoned FEMA consultants, we deliver end-to-end solutions for successful cross-border investments. +91 989-125-5499 info@skmcglobal.com www.skmcglobal.com