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of <h1>India Eases FDI Rules: Foreign-Owned Holding Companies Can Invest Freely in Annexure III Activities Within Equity Limits.</h1> The Government of India has revised the policy for foreign-owned Indian holding companies making downstream investments in activities listed in Annexure III, which qualify for automatic approval. These companies can now invest within the permitted foreign equity levels without prior FIPB/Government approval, provided the activities are confined to Annexure III. Certain investments, such as those involving EOUs, compulsory licensing, or acquisitions, still require prior approval. Companies must notify the SIA within 30 days of investment, adhere to SEBI/RBI guidelines for share transactions, and ensure funds are sourced from abroad. This update modifies existing FDI guidelines accordingly.
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