📌 Read More: Decoding Convertible Notes & CCDs for Startup Fundraising

Thinking of raising funds for your startup but unsure how to structure it?

👉 Dive deeper into the world of hybrid instruments with our side-by-side comparison of Convertible Notes and CCDs—two powerful tools for early-stage capital raising.

✔️ Understand investor rights, regulatory nuances, and valuation impact.
✔️ Learn step-by-step how to issue Convertible Notes in India.
✔️ Explore must-have clauses every founder and investor should insist on in a CN Agreement.
✔️ Get expert insight on why CNs may offer flexibility while CCDs provide structure.

💡 Whether you’re a founder looking to delay dilution or an investor safeguarding downside risks, this guide gives you the legal and strategic clarity you need.

👉 Download our free Convertible Note Agreement Template to kickstart your fundraising journey today:
🔗 Download Now

Foreign Investments Series 1: Handbook on Foreign Direct Investment

August 19, 2025 – By Nakshatra Gujrati

Foreign investment in India has always been a sensitive subject till LPG reforms. After independence, India adopted a highly regulated approach through the Foreign Exchange Regulation Act, 1973 (FERA), which aimed to tightly control and conserve foreign exchange. However, with the economic reforms of the early 1990s (the LPG reforms), the focus gradually shifted from conservation to promotion. This change in outlook led to the enactment of the Foreign Exchange Management Act, 1999 (FEMA), designed to facilitate rather than restrict foreign exchange and investment.

Today, foreign exchange in India is governed by FEMA, which also lays the foundation for different routes of foreign investment. Broadly, these are: Foreign Direct Investment (FDI), Foreign Venture Capital Investment (FVCI), Foreign Portfolio Investment (FPI), and Alternative Investment Funds (AIFs).

This post marks the beginning of the Foreign Investment Series. In Part 1, I will focus on FDI and Downstream Investment, and conclude with a discussion on the reporting obligations linked to them

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