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<h1>Foreign Direct Investment policy sets entry routes, sectoral caps and reporting obligations shaping cross border equity participation.</h1> The Consolidated FDI Policy (effective 1 October 2011) sets out definitions, eligible investors and instruments, and the dual entry framework of the Automatic Route and Government Route. It prescribes sectoral caps, entry and conditionalities for permitted sectors, pricing and valuation norms for equity and convertible instruments, rules for ADR/GDR/FCCB and ECB conversions into equity, and detailed reporting and filing obligations (Forms FC GPR, FC TRS, advance reports and annual returns). Calculation rules for direct and indirect foreign investment, downstream investment limits, and FEMA enforcement and penalties are also detailed.