Modes of Payment allowed for receiving FDI in the Indian Company

Quick Reference to ” Modes of Payment allowed for receiving FDI in the Indian Company ” :-

# The Indian Company issuing Securities to a Resident Outside india cam receive payment of Consideration through :-

1. Normal Banking Channels ( Inward Remittance through banks ).

2. Debit to NRE Account ( Non Residdnt rupee A/c ).

3. Debit to FCNR ( B ) ( FCNR = Foreign Currency Non-Repatriable account ).

4. Debit to Escrow ( Non interest bearing account with approval of AD Category I bank )

5. Through Conversion of Royalty or Know – how fees.

6. Conversion of Import Payables with approval of FIPB.

7. Swap of Capital Instrument ( Govt. Approval is required) .

8. Conversion of Pre- Incorporation Expenses with approval of FIPB.

** Note:-

The Shares or Convertible Securities Should be issued within 180 days from the receipt / Collection of Inward Remittance or Date of Debit to NRE or FCNR ( B ) / ESCROW account otherwise amount shall be refunded.