Under the FDI Scheme, a foreign company or individual can invest in Indian market by creating a joint venture or setting-up a wholly own subsidiary or establishing a branch/liaison/representative office which will be allowed to undertake activities as per the FEMA regulations. Foreign companies can invest in equity shares, convertible debentures or preference shares of an Indian company. Investment can be made through two routes - Automatic and Government Approval – depending upon the tenets of the FDI Policy. Under the Automatic Route, the foreign investor or the Indian company does not require any approval for investment from the Reserve Bank of India (our central bank) or the Government of India. Prior approval from the Government of India through the Foreign Investment Facilitation Portal (FIFP) is required wherever prescribed. Proposals for foreign investment under the Government route are considered by the respective Administrative Ministry/Department. FDI is allowed in India with exception of sectors such as lottery, gambling and betting, chit funds, Nidhi company (a Non-Banking Financial Company formed for borrowing and lending money between its members), trading in Transferable Development Rights (TDRs), real estate [excluding development of townships, construction of residential /commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014], manufacturing of tobacco or tobacco substitutes, atomic energy, railways other than Mass Rapid Transport Systems. Foreign technology collaboration in any form including licensing for franchise, trade mark, brand name, management contract is also prohibited for lottery business, gambling and betting activities.