Sectoral caps for foreign investment set entry routes, approval requirements and sector specific compliance obligations. Regulation 16 prescribes the entry routes (Automatic and Government) and sectoral caps for total foreign investment in Indian entities, listing sector specific ceilings and tailored conditionalities. It permits full automatic investment in unspecified sectors subject to law and conditions, restricts or requires government approval in sensitive sectors, imposes sectoral operational requirements (security clearances, onshore value addition, licensing, minimum capitalization, sourcing norms, lock in periods) and places compliance obligations on the investee company, with tailored rules for financial services, defence, broadcasting, civil aviation, construction, e commerce and pharmaceuticals.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Sectoral caps for foreign investment set entry routes, approval requirements and sector specific compliance obligations.
Regulation 16 prescribes the entry routes (Automatic and Government) and sectoral caps for total foreign investment in Indian entities, listing sector specific ceilings and tailored conditionalities. It permits full automatic investment in unspecified sectors subject to law and conditions, restricts or requires government approval in sensitive sectors, imposes sectoral operational requirements (security clearances, onshore value addition, licensing, minimum capitalization, sourcing norms, lock in periods) and places compliance obligations on the investee company, with tailored rules for financial services, defence, broadcasting, civil aviation, construction, e commerce and pharmaceuticals.
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