Jane Ltd., a foreign company decided to go for foreign direct investment in a non-SME venture in India which is permissible under the approval route. As a Company Secretary of the company you are asked to submit a check-

Foreign Direct Investment under Approval Route - Checklist: Check whether prior approval of Foreign Investment Promotion Board is obtained for FDI which are in excess of sectoral cap. Check whether the shares issued to person who is a citizen of Bangladesh or an entity incorporated in Bangladesh/ Pakistan under the FDI Scheme is with the prior approval of the FIPB and is subject to the prohibitions applicable. Check whether the conversion of import payables/pre incorporation expenses/ share swap is treated as consideration for issue of shares with the approval of FIPB. Check whether the FDI in a non SME has exceeded 24% of paid up capital or sectoral cap whichever is lower, if such non SME has industrial licence for products reserved for SMEs? If so prior approval of FIPB is obtained? Check whether there is any transfer of shares from resident to non resident which requires FIPB approval. Check whether the Issue of shares to a non-resident against shares swap i.e., in lieu for the consideration which has been paid for shares acquired in the overseas company, can be done with the approval of FIPB. Check whether the company has complied with reporting requirements for issue of shares under approval route.