Foreign investment policy sets sectoral FDI limits and routes for retail, aviation, broadcasting and power exchanges.
The circular revises sectoral FDI entry and ownership ceilings: 100% FDI by a single non resident in Single Brand Product Retail Trading under the Government route; 51% in Multi Brand Retail Trading under the Government route; 49% foreign airline ownership in Indian aviation companies under the automatic/Government route; reviewed FDI parameters for Broadcasting Carriage Services under automatic/Government route; and 49% in Power Exchanges registered under CERC regulations under the Government route. AD Category I banks are to notify customers; Press Notes are enclosed and FEMA amendments will be notified separately.

Clubbing of advance authorisations: pending applications filed before the deadline must be processed under prior Handbook provisions.
Requests for clubbing of advance authorisations filed with Regional Authorities on or before the prescribed cut off must be disposed of under the provisions of the Handbook of Procedure that prevailed prior to the revised edition and annual supplement. Eligibility remains subject to the original Public Notice conditions, including exclusions for authorisations issued before an earlier specified date and for erstwhile Value Based Advance licences.

Foreign investment in power exchanges limited under split FDI and FII caps, with FDI requiring government approval.
Foreign investment in Power Exchanges registered under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 is permitted up to 49% of paid-up capital, subject to a split between FDI and FII, with FDI requiring government approval, FII permitted under the automatic route and restricted to secondary market purchases; no non resident investor or persons acting in concert may hold more than the specified individual equity threshold, and all investment must comply with SEBI regulations, other applicable laws and security conditionalities.

Foreign investment limits in broadcasting: higher caps with phased automatic and government approval routes plus strict security conditions.
Policy raises foreign investment caps for specified broadcasting carriage services, distinguishing an automatic route for investment up to a lower threshold and a Government route for investment beyond that threshold up to the revised cap. The definition of foreign investment includes FDI and other foreign instruments (FIIs, NRIs, FCCBs, ADRs, GDRs, convertible preference shares). Companies with foreign investment must satisfy national security and personnel conditions-majority Indian directors, Indian residency for key executives, mandatory security clearances and prior Ministry permission for key appointments and board changes-and comply with monitoring, interception, data localization and inspection obligations set by the Ministry of Information & Broadcasting.

Foreign airlines equity participation limited to minority stake under government approval route, subject to SEBI, security and control conditions.
The policy permits foreign airlines to invest in Indian companies operating scheduled and non scheduled air transport services up to a minority equity ceiling under the government approval route; the ceiling subsumes FDI and FII, requires compliance with SEBI's ICDR and SAST regulations, and imposes security clearances for foreign nationals and clearances for any imported technical equipment. A Scheduled Operator's Permit remains conditioned on Indian registration, principal place of business in India, specified Indian majority on the board, and substantial ownership and effective control vested in Indian nationals; the policy excludes the designated national carrier.

FDI in multi brand retail: permitted under government route with conditions on minimum investment, local sourcing and backend infrastructure.
The Government permits FDI up to 51% in Multi Brand Retail Trading under the Government route, subject to conditions: a prescribed minimum foreign investment threshold; mandated investment of a specified portion of total FDI into defined back end infrastructure within a set period (excluding land costs and rentals); a local procurement obligation from Indian small industries based on installation time investment valuation; investor self certification with auditor certified accounts; outlet location restrictions tied to city population and master/zonal plans; government first right on agricultural procurement; prohibition of e commerce retailing by FDI owned multi brand retailers; and requirement of State consent and central processing before approval.

Single-brand retail FDI: exclusive non-resident licensee requirement and mandatory domestic sourcing, with e-commerce barred.
Amendment to the Single-Brand Product Retail Trading FDI policy permits 100% FDI with government approval but requires that only one non-resident entity, whether brand owner or licensee, undertake single-brand retailing for a specific brand through a legally tenable agreement; the Indian operating company must ensure compliance and submit the licensing agreement. FDI beyond a majority threshold requires domestic sourcing of thirty per cent of goods' value, preferably from MSMEs and related suppliers, self-certified and auditable, initially averaged over five years and thereafter annually. E-commerce retailing by FDI-backed single-brand companies is prohibited.

Amendment to SIONs revises an input description and adjusts permissible input quantities for specified export products.
Amendments to three SION entries in the Handbook of Procedure modify one import item description and adjust permissible import quantities: SION A-1691 replaces 'Nylon Fabric' with "Relevant Nylon Tyre Cord Fabric" for Import Item No. 7; SION H-207 increases allowed quantities for Purified Terephthalic Acid and Ethylene Glycol for Polyester Chips (Textile Grade); and SION H-278 reduces the allowed quantity for PVC Stabilizer for PVC Rigid Film/Sheet, with no other changes to the respective SIONs.

Revalidation of Advance Authorisation: checklist mandates specified documents and maintenance of required value addition criteria for renewal.
Revalidation of Advance Authorisation requires submission of a prescribed check list comprising: self certified documents (original Advance Licence, ANF 4E, covering letter, fee proof), detailed CIF/FOB import export figures and the Value Addition calculation, and adherence to prescribed VA standards (maintain the higher of 15% or the VA in Appendix 11B/authorisation). A Counter Assistance facility will vet applications for documentary completeness to prevent deficiency communications.

Delay in filing appeals and SLP proposals may attract administrative action; strict timeline compliance required.
Delay in filing appeals to High Courts and in seeking Special Leave Petitions is a serious procedural lapse; proposals for SLPs must reach the Directorate complete within the prescribed post judgment period, with field officers required to monitor compliance, give date wise explanations naming responsible officers for late submissions, and note that routine excuses are unacceptable and may lead to administrative action.

Jurisdiction over non-resident PANs: transfer to correct assessing officers ordered to resolve operational and compliance difficulties.
Jurisdiction over non-resident assessees rests with AOs under DGIT (Intl. Tax); 64,697 PANs for non-resident taxpayers were found with AOs lacking jurisdiction, causing inability to view e-filed returns and hampering scrutiny selection, survey, TDS monitoring, grievance handling and accurate reporting. CBDT directed concerned CCsIT/DGITs to transfer these PANs to the correct jurisdictional AOs within the prescribed short timeframe, with automatic transfer to be effected for any PANs not shifted by the deadline.

Vakalatnama procedural compliance: ensure timely, properly authorised filings and affidavits to prevent delay-related litigation risks.
Guidance identifies recurring filing defects in Supreme Court departmental appeals: delayed or improperly executed Vakalatnama (including signatures not at Commissioner rank, missing rubber stamp, incorrect format), and submission of additional documents without supporting affidavits. It stresses the need for officers to monitor departmental and court websites, warns that delay causes litigation losses and revenue risk, and directs the Directorate of Legal Affairs to institute zonal Sensitisation cum Awareness training for officers preparing and filing appeals.

Advance Authorisation invalidation checklist mandates specified documents and LUT/BG requirements tied to exporter category compliance.
A procedural checklist sets documentary and informational prerequisites for Advance Authorisation invalidation/ARO: original licence, signed ANF 4A, covering letter, and LUT/BG or corporate guarantee in prescribed formats; self certified copies; category specific documents (export turnover certificates, tax registrations, manufacturing or APEDA licences) determine LUT eligibility or BG percentage; detailed itemised information on quantities and CIF values for authorisation, imports, balances and proposed invalidation must be furnished; consent from indigenous suppliers where applicable; counter assistance available for pre submission checks.

Advance Authorisation Redemption checklist streamlines required documents and procedural compliance to expedite EODC processing for exporters' submissions.
The checklist prescribes documentary and procedural requirements for Redemption/EODC under Advance Authorisation: core documents (covering letter, ANF 4F copies, consumption register certified by CA/CWA, statement of imports, CENVAT or non excisability certifications), export mode specific papers for physical and deemed exports (bank certificates/FIRCs/LCs, shipping bills, invoices, ARE forms, payment certificates, export/supply statements), and additional conditional documents (invalidation letter, EOU records, third party disclaimers, documents for regularisation of defaults). A free Counter Assistance facility will pre check applications to avoid deficiency letters.

Prior approval for foreign offices in India required; project offices allowed with Indian contract, NGOs need government-route clearance.
Foreign persons must obtain prior regulatory approval to establish Liaison, Branch or Project Offices in India; project offices may be opened under general permission only where a contract with an Indian company exists and prescribed conditions are met. Foreign NGOs, non-profit entities and foreign government bodies are governed by the Government Route and must apply to the Reserve Bank for prior permission. Authorised Dealer Category I banks are to notify their constituents, and these directions operate alongside any other statutory approvals that may be necessary.

Import license suspension for specified marble import applicants pending compliance with deficiency clearance from central authority.
Several applicants for allocation of rough marble and travertine import quantity have deficiencies; Regional Authorities will not issue import licences to those applicants until the deficiencies are cleared by the central authority. The firms must comply with identified deficiencies within one week from the notice date for reconsideration; discrepancy communications have been sent electronically to the firms.

SEZ approvals and modifications: Board conditions denotification, contiguity, co developer approvals and tax scrutiny.
Board imposed uniform conditions on SEZ approvals and modifications: co-developer, equity transfer, unit transfer and name-change approvals require seamless continuity of SEZ obligations, fulfillment of developer eligibility criteria and security clearances, compliance with state laws, and immediate disclosure of full financial details to revenue authorities; the assessing officer retains the right to examine taxability under Income Tax law. Area additions, de notifications and contiguity relaxations were approved or deferred only subject to maintenance or re establishment of contiguity and certification that any tax/duty benefits availed for areas to be de notified have been refunded or not availed.

Registration of carrier agencies moved to EDI Policy Section; future applications must be submitted there for ICES upgrade.
Responsibility for certification and updation of carrier agencies and CHA directories for ICES implementation is now vested in the EDI (Policy) Section, New Custom House, Mumbai; all future registrations and record updations for carrier agencies operating at Air Cargo Complex, Sahar, must be submitted directly to the EDI Policy Section, New Custom House.

Allocation of rough marble imports (600,000 MT): licences 17-20 Sept; monthly import returns and sanctions for false information.
Allocation of 600,000 MTs of Rough Marble and Travertine Blocks for FY 2012-13 is announced with an Annexure of 449 applicants and quantities. Regional Authorities will issue import licences from 17-20 September 2012. Licence holders must file monthly import returns by the 15th of the succeeding month. Applicants providing false or erroneous information will forfeit allocations, be debarred from future allocations and face penal action under the Foreign Trade (D&R) Act. Firms marked deficient in the Annexure must comply within one week before licences are issued.

Customs area designation expands to include additional CFS land for supervised handling of FCL import and export cargo.
Declaration designates an additional area of the Chandra CFS as a customs area for examination, clearance, stuffing/loading and sealing of Full Container Load import and export cargo under Customs supervision, excluding LCL cargo and unaccompanied passenger baggage; procedures are to follow the Handling of Cargo in Customs Area Regulations, 2009 and related public notices.