FDI liberalisation allows full foreign investment in SEZ manufacturing and specified telecom services with divestment and licensing conditions. FDI upto 100% is permitted via automatic route for manufacturing in SEZs (with specified sectoral exclusions) and for certain telecom services (ISPs without gateways, dark fibre providers, electronic mail, voice mail), subject to licensing and security requirements. Proposals beyond 49% are to be considered by FIPB and companies listed abroad with high foreign ownership must divest 26% to Indian public within five years. Royalties for trademarks are allowed under capped rates for exports and domestic sales without technology transfer; wholly owned subsidiaries may pay higher royalties to offshore parents without duration restriction. Offshore venture capital funds may invest via automatic route subject to SEBI and sectoral caps.