Consolidated FDI Policy, 2017 of India (effective from 28 Aug. 2017) notified by DIPP

Consolidated FDI Policy 2017 of India (Applicable from 28 Aug. 2017) notified vide DIPP (GoI) Circular dt. 28 Aug. 2017

India’s Consolidated FDI Policy 2017 has been notified by the DIPP (GOI) applicable w.e.f. 28 Aug. 2017, which subsumes and supersedes all Press Notes/ Press Releases/ Clarifications/ Circulars issued by it so far and in force as on 27 Aug. 2017. New FDI Policy 2017 of India will remain in force until superseded in totality or in part thereof. Reference to any statute or legislation made in this Circular shall include modifications, amendments or re-enactments thereof.

Notwithstanding the rescission of earlier Press Notes/ Press Releases/ Clarifications/ Circulars, anything done or any action taken or purported to have been done or taken under the rescinded Press Notes/ Press Releases/ Clarifications/ Circulars prior to August 28, 2017, shall, in so far as it is not inconsistent with those Press Notes/ Press Releases/ Clarifications/ Circulars, be deemed to have been done or taken under the corresponding provisions of this circular and shall be valid and effective.

Updated 2017 version of FDI Policy incorporates and consolidates the law relating to FDI in India as on date (i.e. 26 Aug. 2017) at one place. This policy document has been issued by DIPP with an objective that foreign investors can understand Government’s policies in the matter of FDI in a simple manner, so that FDI in India can get a boost for overall betterment of Economy, GDP, etc.

It may be noted that India’s FDI Policy has first time included provisions relating to startups/ startup companies. These have been separately addressed in the FDI Policy 2017 as ‘eligible entities’ and relevant provisions have been spelled out for raising FDI from VCF, etc.

Download pdf copy of FDI Policy 2017 from the link below:

Consolidated FDI Policy 2017 w.e.f. 28 Aug. 2017: DIPP Circular dt 28 Aug. 2017

Index of Contents: India’s Consolidated FDI Policy 2017
Chapter 1: Intent and Objective
1.1   Intent and Objective
Chapter 2: Definitions
2.1 Definitions
Chapter 3: General Conditions on FDI
3.1 Eligible investors
3.2 Eligible investee entities
3.3 Instruments of investments, issue/transfer of shares etc
3.4 Entry Routes for Investment
3.5 Caps on Investments
3.6 Entry Conditions on Investment
3.7 Other Conditions on Investment besides Entry Conditions
3.8 Foreign Investment into/downstream Investment by eligible Indian entities
3.9 Remittance, Reporting and Violation
Chapter 4: Procedure for Government Approval
4.1 Competent Authority
4.2 Cases which do not require Fresh Approval
4.3 Online Filing of Applications for Government Approval
Chapter 5:  Sector Specific Conditions on FDI
5.1 Prohibited Sectors
5.2 Permitted Sectors
5.2.1 Agriculture & Animal Husbandry
5.2.2 Plantation Sector
Mining and Petroleum & Natural Gas
5.2.3 Mining
5.2.4 Petroleum & Natural Gas
5.2.5 Manufacturing
5.2.6 Defence
Services Sector
5.2.7 Broadcasting
5.2.8 Print Media
5.2.9 Civil Aviation
5.2.10 Construction Development: Townships, Housing, Built-up Infrastructure
5.2.11 Industrial Parks
5.2.12 Satellites- establishment and operation
5.2.13 Private Security Agencies
5.2.14 Telecom Services
5.2.15 Trading
5.2.16 Railway Infrastructure
Financial Services
5.2.17 Asset Reconstruction Companies
5.2.18 Banking- Private Sector
5.2.19 Banking- Public Sector
5.2.20 Credit Information Companies (CIC)
5.2.21 Infrastructure Company in the Securities Market
5.2.22 Insurance
5.2.23 Pension Sector
5.2.24 Power Exchanges
5.2.25 White Label ATM Operations
5.2.26 Other Financial Services
5.2.27 Pharmaceuticals
Annexure-1 Form FC-GPR
Annexure-2 Types of Instruments
Annexure-3 Provisions Relating to Issue/Transfer of Shares
Annexure-4 Specific Conditions in Certain Cases
Annexure-5.Total Foreign Investment i.e. Direct and Indirect Foreign Investment in eligible Indian entities
Annexure-6..Remittance, Reporting and Violation
Annexure-7 Conditions for Broadcasting Sector
Annexure-8 Conditions for Industrial Parks
Annexure-9  Permissible  limits  under  portfolio  investment  schemes  through  stock  exchanges  for FIIs/FPIs and NRIs
Annexure – 10 Certificate to be furnished by the Prospective Investor as well as the Prospective Recipient Entity

One Response

  1. Dipak Kumar Bhattacharya Jul 4, 2017

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