Home » FEMA Terms Explained
As per the Foreign Exchange Management Act (FEMA), the term ‘a person’ includes:
The original definition contained in FEMA as per section 2 is as follows:
(A) a person who has gone out of India or who stays outside India, in either case
(B) for or on taking up employment outside India, or
(C) for carrying on outside India a business or vocation outside India, or
(D) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;
A person who has come to or stays in India, in either case, otherwise other than–
(a) for or on taking up employment in India, or
(b) for carrying on in India a business or vocation in India, or
(c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;
(i) any person or body corporate registered or incorporated in India,
(ii) an office, branch or agency in India owned or controlled by a person resident outside India,
(iii) an office, branch or agency outside India owned or controlled by a person resident in India
FDI refers to investment by a person resident outside India:
Foreign Investment is any investment made by a person resident outside India on a repatriable basis in:
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Overseas Investment refers to:
Overseas Portfolio Investment (OPI) made by persons resident in India
ODI means investment by a person resident in India in:
OPI means investment by a resident Indian in foreign securities, other than ODI. It does not include:
Financial Commitment includes the total investment by a resident Indian in:
An ESOP is a benefit plan under which a company grants equity participatory rights (such as shares) to its employees.
Foreign Portfolio Investment (FPI) allows overseas investors to invest in Indian securities like stocks and bonds without direct control. It promotes market liquidity while being regulated under FEMA for compliance and transparency.