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16
December 2025Q. 4(c)5 marksSyllabus 2022
(c)Explain the conditions relating to ‘Life Insurance Corporation (LIC)’ along with percentage of Equity/FDI cap and Entry Route under Foreign Direct Investments Regulation & Policy.
a.Foreign investment in LIC shall be subject to compliance with the provisions of the Life Insurance Corporation Act, 1956, as amended from time to time (LIC Act) and such provisions of the Insurance Act, 1938, as amended from time to time, as are applicable to LIC as per the provisions of Section 43 of the LIC Act.
b.Foreign portfolio investment in an Indian Insurance company shall be governed by the provisions contained in Chapter-IV, Rule 10 and 11 read with Schedule II of Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, as amended from time to time and provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors)
Regulations, 2019, as amended from time to time.
c.Any increase in foreign investment in an Indian Insurance company shall be in accordance with the pricing guidelines specified by Reserve Bank of India under the FEMA Regulations.
In Life Insurance Corporation (LIC)’ percentage of Equity/FDI cap is 20% and Entry Route is Automatic.
Source: ICSI Guideline Answers, December 2025, Q. 4(c) (Syllabus 2022).
June 2024Q. 4A(iii)5 marksSyllabus 2022OR, alternative to Q. 4
(iii)What are the conditions for foreign investment in Limited Liability Partnerships (LLPs) ?
Foreign Investment in Limited Liability Partnerships (LLPs) is permitted subject to the following conditions:
i)Foreign Investment is permitted under the automatic route in Limited Liability Partnership (LLPs) operating in sectors activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions.
ii)An Indian company or an LLP having foreign investment, is also permitted to make downstream investment in another company or LLP in sectors in which 100% FDI is allowed under the automatic route and there are no FDI-linked performance conditions. Conversion of an LLP having foreign investment and operating in sectors/activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions, into a company is permitted under automatic route. Similarly, conversion of a company having foreign investment and operating in sectors/ activities where 100% FDI is allowed through the automatic route and there are no FDI-linked performance conditions, into an LLP is permitted under automatic route.
iii)Foreign Investment in LLP is subject to the compliance of the conditions of LLP Act, 2008.
PART-II
Source: ICSI Guideline Answers, June 2024, Q. 4A(iii) (Syllabus 2022).
June 2025Q. 3(a)5 marksSyllabus 2022
(a)Sky Heights Aviation Limited wants to enter the Civil Aviation Sector by constructing airports and developing air transport services in India and abroad. Some International Aviation Companies are interested in investing in it. Explain the Entry Routs for investment and the permissible percentage to receive such investment under the Foreign Direct Investment Regulation & Policy.
Sky Heights Aviation Limited which wants to enter in Civil Aviation Sector by constructing airports and developing air transport services in India and abroad may avail the foreign direct investment as per the following Routs for investment and the percentage to receive such foreign investment:
(1)(a) Scheduled Air Transport Service*/ 100% Automatic up to 49% Domestic Scheduled Passenger Airline (Automatic up to 100% for
NRIs) Government route
(b)Regional Air Transport Service
beyond 49%
(2)Non-Scheduled Air Transport Service 100% Automatic
(3)Helicopter services/Seaplane service 100% Automatic requiring DGCA approval AIR TRANSPORT SERVICES As per Schedule XI of Aircraft Rules, 1937, Air Operator Certificate to operate Scheduled air transport services (including Domestic Scheduled Passenger Airline or Regional Air Transport Service) may be granted to a company or a body corporate provided that:-
(a)It is registered and has its principal place of business within India:
(b)The Chairman and at least two-thirds of its Directors are citizens of India; and
(c)Its substantial ownership and effective control is vested in Indian nationals.
(5 Marks)
Source: ICSI Guideline Answers, June 2025, Q. 3(a) (Syllabus 2022).
June 2026Q. 2(c)5 marksSyllabus 2022
(c)ABC Global Media Ltd., a United Kingdom-based well-known daily newspaper, proposes to publish in India, (i) a scientific and technical journal and (ii) a facsimile edition of its foreign newspaper.
Examine the permissibility of each proposal under the Foreign Direct Investments Regulations and Policy for Print Media, specifying the applicable FDI cap, entry route, and mandatory conditions.
Sector/Activity % of Equity/ FDI Cap Entry Route Publishing/printing of scientific and technical magazines/specialty journals/ periodicals,
100% Government
subject to compliance with the legal framework as applicable and guidelines issued in this regard from time to time by Ministry of Information and Broadcasting Publication of facsimile edition of foreign
100% Government
newspapers Other Conditions:
(i)FDI should be made by the owner of the original foreign newspapers whose facsimile edition is proposed to be published in India.
(ii)Publication of facsimile edition of foreign newspapers can be undertaken only by an entity incorporated or registered in India under the provisions of the Companies Act, as applicable.
(iii)Publication of facsimile edition of foreign newspaper would also be subject to the Guidelines for publication of newspapers and periodicals dealing with news and current affairs and publication of facsimile edition of foreign newspapers issued by Ministry of Information & Broadcasting on 31.3.2006. as amended from time to time.
Source: ICSI Guideline Answers, June 2026, Q. 2(c) (Syllabus 2022).
December 2024Q. 3(a)5 marksSyllabus 2022
(a)Indian Satellite & Technology Pvt. Ltd. is an Indian start-up that has recently developed advanced Satellite technology. A major Aerospace company from Russia is interested in investing in it. Explain the Entry Routes for investment and compliance to receive the investment under the Foreign Direct Investment-Regulation and Policy.
Investments can be made by non-residents in the equity shares/fully, compulsorily and mandatorily convertible debentures/fully, compulsorily and mandatorily convertible preference shares of an Indian company, through the Automatic Route or the Government Route. Permissible FDI can be made under ““Automatic route” or “Government Route”.
Automatic Route: It means the entry route through which investment by a person resident outside India does not require the prior approval of the Reserve Bank of India or the Central Government.
Government Route: It means the entry route through which investment by person resident outside India requires prior Government approval and foreign investment received under this route shall be in accordance with the conditions stipulated by the Government in its approval.
Besides the entry conditions on foreign investment, the investment/investors are required to comply with all relevant Sectoral Cap, Sectoral Laws, Rules & Regulations made thereunder, Security conditions, and State/Local Laws/Regulations. Proposals for foreign investment under Government Route are considered by respective Administrative Ministry/Department.
100% FDI can be received in space sector. For receiving FDI in advanced Satellite technology, 74% investment can be received through automatic route. Investment beyond 74% can be received through Government approval [i.e. through Department of Space.
Source: ICSI Guideline Answers, December 2024, Q. 3(a) (Syllabus 2022).