CONSOLIDATED FDI POLICY (EFFECTIVE FROM 10-4-2012) updated upto 22-09-2012

Foreign direct investment rules: entry routes, sectoral eligibility, pricing and mandatory reporting govern inbound investment flows.

The Consolidated FDI Policy prescribes the framework for inbound foreign direct investment: definitions of eligible investors and instruments; automatic and government entry routes; sectoral eligibility and caps; valuation and pricing rules for equity and convertible instruments; timelines and documentation for issuance and transfers, including Forms FC-GPR and FC-TRS; rules for conversion of non-cash obligations into equity subject to entry route and sectoral limits; downstream investment computation and ownership/control tests; sectoral conditionalities and security clearances; mandatory reporting, repatriation rules; and FEMA enforcement with adjudication and compounding mechanisms.