INDIA Law and Practice Contributed by: Raj Ramachandran, Kartik Jain, Mannat Nirola and Anmol Mahajan, JSA Advocates & Solicitors
JSA Advocates & Solicitors One Lodha Place, 27th Floor, Senapati Bapat Marg, Lower Parel, Mumbai 400 013, India Tel: +91 22 43418900 Email: sahil.wason@jsalaw.com Web: www.jsalaw.com
1. Legal System 1.1 Legal System and Judicial Order
2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments Foreign investment in India is primarily governed by the Foreign Exchange Management Act, 1999 (FEMA), the Foreign Exchange Management (Non-Debt Instru - ments) Rules, 2019 (“NDI Rules”) and the Consolidat - ed FDI Policy issued by the Department for Promotion of Industry and Internal Trade (DPIIT). A foreign investor may invest in India through, among others, the following routes: • Foreign direct investment (FDI), under either the automatic route or the government approval route. Under the automatic route, no prior government approval is required, and foreign investments may be made up to the applicable sectoral cap, subject to the prescribed requirements. Investments falling under the government approval route require prior approval from the relevant authority. FDI is general - ly preferred for strategic and long-term investments in Indian businesses, including through wholly owned subsidiaries or joint ventures, particularly where the investor seeks to participate in the man - agement/control of the entity. • Investment as a Foreign Portfolio Investor (FPI), subject to prior registration with the Securities and Exchange Board of India (SEBI) and compliance with the applicable FPI regulations. The FPI route is preferred for portfolio investments in listed securi - ties, where investors seek flexibility to deal in secu - rities through stock exchanges without adhering
India follows a common-law system, supplement - ed by a comprehensive written Constitution and an extensive body of statutory legislation. The judiciary comprises a unified and integrated hier - archy headed by the Supreme Court of India, which is the apex judicial authority and the final court of appeal in constitutional, civil and criminal matters. The High Courts exercise jurisdiction over their respective states and union territories and supervise the sub - ordinate judiciary within their territorial jurisdiction. The subordinate court system consists of the District and Sessions Courts, Magistrates’ Courts and Civil Judges’ Courts. District and Sessions Courts function as the highest courts at the district level for the adjudi - cation of civil and criminal matters, respectively, while the Civil Judges’ Courts and Magistrates’ Courts form the lower tiers of the subordinate judiciary, exercising jurisdiction over less serious civil and criminal matters, respectively. In addition to the ordinary court system, specialised tribunals have been constituted to adjudicate disputes in specific subject matters. Appeals from such tribu - nals generally lie before the High Courts or, where applicable, the Supreme Court.
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