General characteristics of investment law in India
DOI:
https://doi.org/10.61345/2734-8873.2024.2.6Ключові слова:
invest, share, state, government, legal system, act, foreigh direct investmentАнотація
The aim of the work is a comprehensive analysis of investment law in India.
The methodological basis of the study are official websites of specialized institutions, laws, analytical reports, articles by other scientists, etc.
According to the results of the conducted research, it was found that two main legislative acts regulate investment activities in India. The first piece of legislation is the Foreign Exchange Management Act, 1999, the main objective of which is to promote foreign trade and foreign exchange and to develop and maintain the foreign exchange market in India. According to Section 5 and 6 of the Law, operations with a current currency account are allowed only on the condition that they do not have any restrictions (criminal, state, etc.). Capital account transactions mean transactions during which changes in assets or liabilities occur (referring to liabilities of resident and non-resident persons in relation to assets). The second act – Consolidated Policy on Attracting FDI in India by the Department of Trade and Industry Promotion 2020 – includes clarification of all investment norms. The policy update is in line with the policy of need to attract FDI to India, as per the plans of the Department.
In conclusion, it was found that the legal system of India is based on common law, which is based on English law. According to the Constitution of India, a quasi-federal structure has been approved, which provides for the division of legislative power between the central government and the individual states. Foreign direct investment in India is governed by two main pieces of legislation. The first is the Foreign Exchange Management Act of 1999, its main objective is to facilitate foreign trade and foreign exchange and to develop and maintain the Indian foreign exchange market. The second – Consolidated policy on attracting FDI to India. Attracting foreign direct investment in India is possible in two ways: automatic investment of FDI and obtaining permission for FDI.
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