16 January 2012
Just to clarify further I agree with your interpretation. You can start multi brand but you cannot bring in foreign exchange as it shall become fdi ! Hope confusion is gone now. Technically you are correct in one interpretation but you cannot ignore other sentence of law. Still you want to brain storm Pl welcome.
Although technically Schedule 4 is automatic and hence you can bring in FDI on non-repatriation basis for the same, but only for the things permitted under FEMA. I had a ocassion to deal with the same and my view is that investment by NRI in multi brand retail is not allowed.
Even there was a recent news that RBI wants scrapping of schedule 4.
Also person of Indian origin who comes to India to undertake business shall become resident as per FEMA only when he has stayed for more than 182 days in previous year,before the current year.
CAclubindia
