Industrial license validity revised: initial term extended, with a further extension available for defence sector.
The initial validity period for Industrial Licenses in the Defence Sector is revised to seven years, with a further extension of up to three years available for both existing and future licences, altering the previous shorter initial term and cumulative extension framework to streamline grant and renewal procedures.

Foreign investment in pension sector permitted; lower-tier stakes via automatic route, higher stakes require government approval and PFRDA registration
Foreign investment in the pension sector is allowed up to a combined ceiling of forty-nine percent with an automatic route for lower-tier stakes and a government route for higher-tier stakes. Entities bringing foreign equity must obtain registration from the Pension Fund Regulatory and Development Authority and comply with the PFRDA Act and related rules. Investments that effect control or ownership transfer to non-resident entities require prior government approval in consultation with financial sector authorities, and the investee Indian pension fund company is responsible for ensuring compliance; ownership and control are as defined under FDI policy.

Foreign Direct Investment reporting: VPN accounts for e Biz access must be procured and prepaid, with records maintained for compliance.
AD Category I banks must obtain individual VPN accounts from NIC for e Biz access, with each account coterminous with the Class 2 digital signing certificate (maximum two years), pay the prescribed advance to NICSI via NEFT/RTGS to the designated ICICI account, submit the Payment Reference Form and supporting user documentation, and maintain records of connections, amounts remitted and reconciliation information; reconciliation issues are to be addressed with NICSI. The directions are issued under the Foreign Exchange Management Act.

Suspension of FCRA registration for unauthorized transfers and non disclosure of foreign contributions, triggering account freeze and review.
Registration under FCRA was suspended under Section 13 for a statutory period due to unauthorized diversion of foreign contributions from the designated FCRA account into multiple undeclared utilization and other accounts without intimation, repeated under reporting and omission in returns and auditor certificates, excessive administrative expenditure without prior approval, funding of legal costs for associated entities, transfer of funds to a non FCRA trust, non disclosure of foreign remuneration, unauthorised office relocation and replacement of executive committee members in breach of applicable Sections and Rules.

Foreign direct investment in insurance allowed higher ceiling, with automatic route to lower share and government approval for larger stakes.
Foreign direct investment in the Indian insurance sector is permitted up to forty nine percent with investment up to twenty six percent under the automatic route and any additional foreign investment up to the sector ceiling requiring Government approval. Investors and companies must comply with the Insurance Act, obtain IRDA licences, ensure ownership and control remain with resident Indian entities, and observe FEMA/SEBI rules for portfolio investment and RBI pricing guidelines; defined terms follow the referenced notification.

Cancellation of FCRA registration for failure to file annual returns triggers deregistration and asset management directives for affected organisations.
The Central Government cancelled the certificates of registration of numerous associations for failing to file mandatory annual returns in form FC 6 for the relevant financial years, after issuing show cause notices and receiving limited responses; cancellations were effected for violation of the statutory annual return obligation and attendant regulatory rule, and district authorities and financial regulators were directed to manage assets and take necessary administrative action during the cancellation period.

Buyer's credit cap removal allows unlimited buyer's credit for project exports under revised FEMA project export guidelines.
Authorised dealer banks and participating export finance institutions may extend buyer's credit to foreign purchasers for export of goods on deferred payment terms and turnkey projects from India without the former USD limit; the USD 20 million cap is withdrawn and the Memorandum of Instructions on Project and Service Exports (PEM) has been revised. Authorised dealers must notify constituents of the revised PEM and implement the changed procedures for post award approvals and modifications. Directions are issued under the Foreign Exchange Management Act and are without prejudice to other statutory permissions.

IFSC entities treated as non residents under FEMA, making their transactions with Indian residents subject to FEMA rules.
IFSC financial institutions and branches recognised under the IFSC framework are treated as persons resident outside India, making their dealings with Indian residents subject to FEMA, 1999 and related Rules and Regulations. "Financial transaction" covers payments, bills, securities transfers and debt acknowledgements; "financial service" covers activities permitted under the institution's governing statute or regulator. The 2015 IFSC Regulations create a specific regime: other FEMA Regulations apply to IFSC entities only where expressly provided. AD Category I banks must inform constituents; the direction is issued under section 47 of FEMA, 1999 without prejudice to other statutory approvals.

Position limits for FPIs expanded in ETCD markets, allowing larger USD INR and other currency exposures under exchange monitoring.
Revision increases permitted open positions for Foreign Portfolio Investors (FPIs) in the Exchange Traded Currency Derivatives (ETCD) market: FPIs may take both long and short positions in USD INR up to an increased per exchange limit and combined positions in EUR INR, GBP INR and JPY INR up to an aggregate per exchange limit; exchanges shall monitor limits and report breaches, and may prescribe fixed per contract limits for non USD pairs.

ETCD participation limits expanded, documentation eased and importer hedging entitlement aligned with exporters.
Guidelines expand ETCD participation by raising position limits for USD INR and authorising combined positions in EUR INR, GBP INR and JPY INR, require exchanges to monitor breaches, permit statutory auditor certificates to be replaced by signed undertakings from the CFO and Company Secretary (or CEO/COO if no CS), and allow importers to hedge contracted exposures up to their full eligible limit, with other operational conditions unchanged.

Line of Credit for project exports mandates majority India sourcing and time-limited LC/disbursement windows under FEMA directions.
Exim Bank's Line of Credit to Banco Exterior de Cuba finances a fertilizer plant with a requirement that at least 75% of contract value for goods and services be sourced from India and up to 25% may be procured abroad. The Credit Agreement is effective from February 2015 and prescribes LC/disbursement deadlines: 48 months from scheduled completion for project exports and 72 months from agreement execution for supply contracts. Shipments must be declared on EDF/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from own funds or EEFC balances after realisation, subject to existing rules; AD Category-I banks must notify exporters and may seek details from Exim Bank. Directions are issued under FEMA.

Know Your Customer compliance: MTSS Indian Agents must apply RBI banking regulation AML/CFT guidelines and ensure sub agent adherence.
Know Your Customer, Anti Money Laundering and Combating Financing of Terrorism standards under the Prevention of Money Laundering Act are mandated for Authorised Persons acting as Indian Agents under the Money Transfer Service Scheme; Department of Banking Regulation guidelines shall apply mutatis mutandis to all APs, with primary responsibility on Indian Agents to ensure Sub Agent adherence and to inform their Sub Agents and constituents.

KYC and AML compliance: DBR instructions apply to authorised persons and their agents, franchisers remain responsible.
Instructions on KYC, AML and CFT for money-changing activities issued by the Department of Banking Regulation shall apply to all Authorised Persons mutatis mutandis; the Foreign Exchange Department will not issue separate instructions. The consolidated guidance also applies mutatis mutandis to agents and franchisees, with franchisers bearing sole responsibility for ensuring compliance; Authorised Persons must notify their constituents. The directions are issued under the Foreign Exchange Management Act and the Prevention of Money Laundering Act and do not affect other legal permissions.

Failure to file mandatory annual returns leads to cancellation of FCRA registration, including all branches and units.
Registration was cancelled after the association failed to submit mandatory annual returns in form FC-6 for successive financial years within the prescribed period; despite claiming no receipt of foreign contributions and later filing returns belatedly, the Central Government, on available information, rescinded the association's certificate of registration for violation of the annual-return filing requirement and extended the cancellation to its branches and units.

Line of Credit compliance: export financing requires Indian content, EDF/SDF reporting, and FEMA based RBI procedural adherence.
Exim Bank's Line of Credit to Myanma Foreign Trade Bank finances irrigation projects subject to at least 50 percent Indian content; eligible goods and services include machinery, equipment and consultancy services under the Foreign Trade Policy. Letters of credit and disbursements are time limited, shipments must be declared on EDF/SDF forms, and AD Category I banks must advise exporters, permit agency commission payments from exporter resources or EEFC balances after realization, and follow RBI and FEMA directions.

Discontinuation of Stat 5 and Stat 8 returns: banks must use XBRL for NRD-CSR reporting and stop manual filings.
Banks maintaining NRD accounts must discontinue submission of Stat 5 and Stat 8 Returns from March 2015 and stop sending both hard and soft copies to the Department of Statistics and Information Management. NRD-CSR reporting has been migrated to and stabilised on the XBRL platform, which will be the operative mechanism for NRD data submission. The direction is issued under FEMA statutory authority and is without prejudice to permissions or approvals required under other laws.

Line of Credit terms: Exim Bank export credit requires minimum Indian content, EDF/SDF declaration, and commission limits.
Exim Bank's Line of Credit to Banco Exterior De Cuba finances modernization of an injectable product plant subject to eligibility under India's Foreign Trade Policy and FEMA directions. The LOC mandates that at least 75 percent of contract value for goods and services be supplied from India, with up to 25 percent procured externally. It prescribes time limits for opening Letters of Credit and disbursement, requires EDF/SDF declaration of shipments, disallows agency commission under the LOC while permitting exporters to pay commissions from their own resources or EEFC balances subject to realization and remittance rules, and directs AD Category-I banks to inform exporters.

FDI in construction development: clarified rules on minimum capitalization, project commencement, trunk-infrastructure and exit/transfer protocols.
Minimum capitalization is a project-specific threshold: FDI cannot be brought into a project unless the required minimum capitalization is achieved within six months of project commencement, defined as the statutory approval date of the building/layout plan; later FDI is permitted if capitalization is met. Exit before completion requires FIPB approval; automatic exit is allowed upon project completion or upon development of defined trunk infrastructure certified by a Council of Architecture-registered architect. NR-to-NR transfers prior to completion require FIPB approval; completed projects may host foreign investors for operation and management subject to the real estate business exclusion.

Prohibition on property acquisition by specified foreign citizens now includes Macau and Hong Kong, requiring RBI permission for transfers.
Prohibition on acquisition or transfer of immovable property by citizens of specified jurisdictions is extended to include Macau and Hong Kong; such persons cannot acquire or transfer immovable property in India, other than leases not exceeding five years, without prior permission of the Reserve Bank under Regulation 7 of the Foreign Exchange Management (Acquisition and Transfer of immovable property in India) Regulations, 2000, as amended by the 2015 notification.

Line of credit conditions require majority India sourcing and specified disbursement and reporting requirements under FEMA.
Exim Bank's LOC to Niger finances solar village electrification and a 5 MW PV project, requiring at least 75 percent India-sourced goods and services; up to 25 percent may be procured abroad. The Credit Agreement is effective from February 18, 2015, with opening/disbursement timelines tied to project completion (48 months) and supply contracts (72 months). Shipments must be declared on EDF/SDF forms. No agency commission is payable under the LOC, though exporters may remit commission from their own resources or EEFC balances after realization, subject to remittance rules. AD Category-I banks must inform exporters and obtain LOC details; directions issued under FEMA.