India has the most 6 liberal and transparent policies on FDI among emerging economies. FDI up to 100% is allowed under almost all activities, except a few. Press Note 7 (2008 Series) further provides that the following sectors are prohibited for FDI:
The extant policy does not permit FDI in the following cases:
|(I)||gambling and betting;|
|(IV)||retail trading (except single branded product retailing).|
General permission of the Reserve Bank of India (RBI) is available to Indian companies to issue right/bonus shares, subject to certain conditions. Entitlement of rights shares is not automatically available to investors who have been allotted such shares as Overseas Corporate Bodies (OCBs). OCBs have been derecognized as a class of investors with effect from 16 September 2003. Such issuing companies would have to seek specific permission from RBI, Foreign Exchange Department, Foreign Investment Division, Central Office, Mumbai for issue of shares on right basis to erstwhile OCBs. However bonus shares can be issued to erstwhile OCBs.