Foreign direct investment permitted higher participation in defence with capped portfolio investment and mandatory allocation and monitoring. Revision permits Foreign Direct Investment up to 49% under the government route in defence subject to Press Note 7 (2014 Series) conditions; portfolio and FVCI investment collectively capped at 24% of total equity with NRI portfolio investment not exceeding 10%, portfolio investment under automatic route. Listed defence investee companies must allocate sub limits for RFPI (including QFI and FII), NRI and FVCI within the 24% and inform the Reserve Bank for monitoring. Items not on the finalized defence list and most dual use items do not require an industrial licence; FEMA principal regulations were amended accordingly.
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Foreign direct investment permitted higher participation in defence with capped portfolio investment and mandatory allocation and monitoring.
Revision permits Foreign Direct Investment up to 49% under the government route in defence subject to Press Note 7 (2014 Series) conditions; portfolio and FVCI investment collectively capped at 24% of total equity with NRI portfolio investment not exceeding 10%, portfolio investment under automatic route. Listed defence investee companies must allocate sub limits for RFPI (including QFI and FII), NRI and FVCI within the 24% and inform the Reserve Bank for monitoring. Items not on the finalized defence list and most dual use items do not require an industrial licence; FEMA principal regulations were amended accordingly.
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