FINANCINGOPTIONFORFOREIGNINVESTORSININDIA.pptVIP

Bank of Baroda, Guangzhou FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Presented by R.Gopalakrishnan, Chief Executive, Bank of Baroda, Guangzhou branch 由印度巴鲁达银行广州分行区域总裁 Gopalakrishnan先生进行介绍 FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Foreign Direct Investment (FDI) to India is permitted through: 外商可通过以下渠道进行直接投资： Financial Collaboration 金融合作 Joint Ventures Technical collaboration 合资及技术合作 Capital Market via Euro Issues 通过欧元债券进入资本市场 Private placement Preferential allotment 私人配售及优先配发 FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Inflow and outflow of Foreign Exchange is controlled by: RBI FEMA Regulations Public Issues are controlled and regulated by SEBI. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Financing may be in the form of: Equity Debt Combination of both FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Equity may be : Ordinary Share Capital or combination of Ordinary Share Capital and Preference Share. For Wholly Owned Subsidiaries – 100% equity in the form of foreign currency. For Joint Ventures – Only to the extent of Investors share. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Debt may be : External Commercial Borrowing through Automatic Route or through Approval Route of RBI Rupee Funding Convertible Debenture and Corporate Bonds FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Automatic Route of Reserve Bank of India: Approval is given in 2 weeks and equity cap ranges between 24% to 100% depending on its category. Approval Route of Foreign Investment Promotion Board: Approval is given in 4 to 6 weeks and is liberal to all sectors. It is not mandatory for foreign investors to have a local partner. FINANCING OPTION FOR FOREIGN INVESTORS IN INDIA Rupee Funding may be availed for : Project Finance – for meeting project infrastructure with larger maturity period. Term Finance – for acquiring Fixed Assets repayable over 3 to 5 years. Working Capital – in the form of Cash Credit for financing inventory,S.I.P Finished