A Study of Laws Affecting the Issue of shares to Foreign Investors

Abstract

India, the seventh-largest country by area and the second biggest country in terms of population. At the same time, it is also one of the fastest-growing country in terms of economy. However, this economic growth is majorly attributed to the sweep of changes that have been ushered by the governments as well as regulators to meet the market’s expectations. Various changes have also been made to several laws which deal with the compliances whereby the governments have streamlined the laws and brought them in line with the socio-economic changes that have happened. This paper introduces the basic legal regime regarding the issue of Private Equity Shares to foreign investors. It further discusses the FDI Regime specific to the e-commerce sector followed by discussion upon the Foreign Exchange Management Act. It should be noted that the laws discussed here are subject to change as the regulatory environment in India is dynamic.