After-sale repair services classification permits automatic FDI when goods sales are naturally bundled; standalone parts sales treated as retail trading.
After-sale and repair services are eligible for 100% foreign investment on the automatic route when the sale of goods such as spare parts or accessories is naturally bundled with the service in the ordinary course of business; standalone sales of spare parts or accessories are to be treated as retail trading for FDI policy purposes, subject to applicable laws, security and other conditionalities.

FPI investment limits revised: increased government securities allocations take effect; SEBI to issue operational guidelines.
The circular increases Foreign Portfolio Investor limits in Central Government Securities and State Development Loans for January-March 2018, provides prior and revised numerical ceilings and aggregate totals, makes the revisions effective from January 1, 2018, directs that allocation and monitoring will follow operational guidelines to be issued by the securities market regulator, instructs Authorised Dealer Category I banks to inform constituents, and states that the directions are issued under statutory foreign exchange powers without prejudice to other required permissions.

Government-supported Line of Credit finances exports for training and incubation centres subject to sourcing and compliance conditions.
Government-supported Line of Credit finances exports of eligible goods and services for establishment of vocational training and business incubation centres; at least 75 per cent of contract value must be supplied from India with up to 25 per cent procured from outside. Shipments under the LoC must be declared on the Export Declaration Form. No agency commission is payable under the LoC, although exporters may remit commission from their own funds or Exchange Earners' Foreign Currency Accounts after realisation, subject to extant remittance rules and Authorised Dealer compliance under FEMA.

Line of Credit supports export financing with 75% local content requirement and FEMA based reporting and remittance rules.
A Government-supported Line of Credit to a Mauritius infrastructure company permits financing of exports of eligible goods and services from India, requires at least 75% of contract value to be sourced from India (with up to 25% from abroad), mandates Export Declaration Form reporting, sets a terminal utilisation period from project completion, and prescribes that no agency commission is payable under the LoC though exporters may use own funds or EEFC balances for commission remittance subject to extant rules; directions issued under FEMA sections 10(4) and 11(1).

Simplified Hedging Facility enables streamlined foreign exchange hedging with designated banks, simplified documentation, and central reporting requirements.
The Simplified Hedging Facility permits resident and non resident entities (excluding individuals) to hedge exchange rate risk using permitted OTC and exchange traded currency derivatives under a streamlined regime. Each user appoints a Designated Bank to assess needs, set and monitor limits up to the facility cap (with discretionary extension), and report users and limits to a Trade Repository. OTC booking rules, rebooking, treatment of gains and losses, prohibition on concurrent hedging of the same exposures, annual certification by a senior finance officer, and TR based monitoring form the core operational and compliance mechanics.

Line of Credit supported by the government enables export financing for railway projects subject to FEMA and export rules.
A Government supported Line of Credit from Exim Bank to Mongolia finances exports for railway and related infrastructure projects, requiring at least 75 percent of goods and services value to be supplied from India and permitting the remaining 25 percent to be procured abroad. The LoC became effective August 25, 2017, carries a terminal utilization period of 60 months after project completion, requires shipment declaration on the Export Declaration Form, disallows agency commission under the LoC while permitting exporter-paid commission from own or EEFC resources subject to realization, and is issued under the Foreign Exchange Management Act.

Line of credit support enables export financing for specified infrastructure projects with sourcing and compliance conditions.
Exim Bank's Government supported Line of Credit finances eligible exports for specified Sri Lankan railway projects, covering goods and services qualifying under the Foreign Trade Policy, with at least 75 per cent of contract value supplied from India and up to 25 per cent procured outside India. The Agreement includes a terminal utilisation period after project completion; shipments must be declared on the Export Declaration Form. No agency commission is payable under the LoC, though exporters may use their own funds or EEFC balances for commission subject to realisation and AD Category I compliance.

Hedging INR trade exposures: central treasuries may contract with authorized dealer banks under prescribed models, documentation, and settlement rules.
Non residents and their central treasuries may hedge INR invoiced trade exposures with AD Category I banks in India under two models: Model I (via an overseas bank correspondent) and Model II (direct dealing with the AD bank). AD banks must verify underlying trade documentation, obtain prescribed undertakings and KYC/AML certification, confine hedge amount and tenor to the underlying transaction and regulatory limits, settle via Nostro/Vostro accounts, prohibit rebooking of cancelled contracts while permitting a single rollover tied to extension of the underlying transaction, and report Model II contracts to the trade repository.

FPI investment limits in government securities increased, triggering SEBI guidelines and AD Category I compliance obligations.
Revision of FPI investment limits increases permitted holdings in Central Government Securities and State Development Loans for the October-December 2017 quarter, with the revised allocations effective October 3, 2017. SEBI will issue operational guidelines for allocation and monitoring of the revised limits, and AD Category I banks must inform their constituents; the directions are issued under FEMA and subject to other applicable permissions.

Rupee denominated bonds excluded from FPI corporate bond limit; reporting via ECB norms, with other ECB policy unchanged.
Issuance of Rupee denominated bonds overseas is excluded from the cap on investments by foreign portfolio investors in corporate bonds, removing those issuances from the FPI corporate bond limit. The additional email reporting requirement for RDB transactions is dispensed with, but RDBs continue to be reported under existing External Commercial Borrowing norms; all other ECB policy remains unchanged.

Masala bond reclassification: reassigns masala bond issuances to ECB framework and restores corporate bond capacity for FPIs.
Masala bonds are reclassified from the FPI corporate bond limit to the ECB framework and will be monitored accordingly. The amount freed by this shift will be restored to the FPI corporate bond ceiling through phased quarterly allocations, and a portion of each quarterly allocation is reserved exclusively for long term FPIs to invest in infrastructure as defined under the Master Direction on ECBs. All other FPI debt investment conditions remain unchanged.

Electronic Bank Realisation Certificate issuance must be generated solely from EDPMS data to ensure consistent export realisation reporting.
Authorised Dealer Category I banks must update the Export Data Processing and Monitoring System (EDPMS) with export proceeds as realised and, from the mandated operative date, generate Electronic Bank Realisation Certificates (eBRC) solely from EDPMS data to ensure consistency; banks must also adapt IT systems and capture advance and outstanding inward remittances in EDPMS, notify constituents, and note the amendment to the Master Direction, all pursuant to powers under the Foreign Exchange Management Act.

Foreign direct investment framework: unified Automatic and Government entry routes with sectoral caps, conditionalities and reporting obligations.
The Consolidated FDI Policy (effective August 28, 2017) provides a unified framework for foreign direct investment into India, defining eligible investors, investee entities and permissible instruments; it prescribes two entry routes (Automatic and Government), specifies sectoral caps, conditionalities and prohibited sectors, sets pricing, valuation, lock-in and reporting requirements (including FC-GPR and FC-TRS filings), details procedures for transfers and conversions, and identifies Competent Authorities and compliance, monitoring and remittance obligations under FEMA, SEBI and sectoral regulations.

Foreign exchange reporting obligations: fortnightly Form BAL filings moved to RBI web portal; monthly Nostro/Vostro report discontinued.
Head/Principal Offices of Authorised Dealer Category I banks must submit holdings of all foreign currencies in Form BAL on a fortnightly basis via the Reserve Bank web portal, effective from August 16, 2017, with returns filed within seven calendar days of the reporting period; the separate monthly Nostro/Vostro account balance report is discontinued. Directions issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

Government backed Line of Credit for export finance imposes 75% India sourcing and EDF declaration requirements.
A Government of India supported Line of Credit (LoC) from Exim Bank to Ghana finances export of eligible goods and services for a sugarcane development and irrigation project, requiring at least 75% of contract value to be supplied from India and allowing 25% procurement from abroad. The LoC is effective from July 7, 2017 with a terminal utilisation period of 60 months after scheduled completion. Shipments must be declared on the Export Declaration Form; no agency commission is payable under the LoC though exporters may remit commission from their own resources or EEFC balances subject to AD Category I bank compliance. Directions are issued under Section 10(4) and Section 11(1) of FEMA.

FPI investment limits prioritise long term investors, reallocating future increases to favour longer horizon capital and tightening transfers.
The Medium Term Framework for FPI investment preserves overall caps for Central Government Securities and SDLs but reallocates future increases to favour the Long Term category (3:1 ratio versus General), removes transfer of unutilised Long Term limits to General, and harmonises SDL treatment with G secs. July-September quarter limits were increased and effective July 4, 2017. Existing conditions continue to apply, including security wise limits, coupons permitted outside overall limits, and a minimum three year residual maturity; SEBI will issue operational allocation and monitoring guidelines.

Masala bond issuance rules centralized with revised maturity, pricing ceiling, and investor eligibility for overseas rupee bonds.
Proposals for issuance of Rupee denominated bonds overseas will be examined at the Foreign Exchange Department, Central Office, Mumbai. Revised issuance parameters include differentiated minimum original maturity by issuance size, an all in cost ceiling set as a margin over the Government securities yield of corresponding maturity, and recognised investors limited to those permitted under the Master Direction who are not related parties within the meaning of Ind AS 24.

Line of Credit export financing requires majority Indian sourcing, EDF shipment declaration and regulated commission payment.
A Government of India supported Line of Credit of US dollar four million has been extended by Export-Import Bank of India to the Government of Guyana to finance procurement of high-capacity fixed and mobile drainage pumps and associated structures. The credit finances exports of eligible goods and services from India; suppliers must source at least 75 per cent of the contract price from India while up to 25 per cent may be procured from abroad. Shipments under the LoC must be declared on the Export Declaration Form, and AD Category I banks must notify exporters and advise them to obtain full details from Exim Bank. No agency commission is payable under the LoC, though exporters may use own funds or EEFC balances for commission after realization.

Line of Credit for Project Trident conditions Indian content, compliance with export declaration and FEMA requirements.
Exim Bank's Government-supported Line of Credit for Project Trident finances eligible exports from India with a requirement that at least 75 percent of contract value be supplied from India and up to 25 percent may be procured abroad; effective April 3, 2017, the LoC allows a terminal utilization period of 60 months after project completion, mandates Export Declaration Form filing, prohibits agency commission payable under the LoC while permitting exporter-funded or EEFC-funded commission payments after realization, and instructs AD Category I banks to inform exporters and obtain full LoC details from Exim Bank, issued under the Foreign Exchange Management Act.

Government-backed line of credit supports exports with majority domestic sourcing requirement and mandatory EDF shipment declarations.
A Government-supported Line of Credit from Exim Bank to Nicaragua finances exports for transmission and substation works, requiring at least 75 per cent of contract value to be supplied from India and permitting up to 25 per cent foreign procurement; effective March 30, 2017 with a terminal utilization period of 60 months post completion. Shipments must be declared on the Export Declaration Form, no agency commission is payable under the LOC though exporters may remit commission from own resources or EEFC balances subject to AD Category I bank compliance, and AD banks must notify exporters and obtain LOC details from Exim Bank.