<h1>Government Simplifies FDI Policy with Composite Caps on Foreign Investments Effective July 30, 2015.</h1> The government introduced composite caps on foreign investments to simplify and unify the Foreign Direct Investment (FDI) policy across sectors, effective from July 30, 2015. This measure includes all types of foreign investments, both direct and indirect, under various schedules of the Foreign Exchange Management Act (FEMA). It excludes Foreign Currency Convertible Bonds and Depository Receipts with debt instruments. Equity holdings from debt conversions are considered foreign investments. The Reserve Bank of India monitors inflows, and the Enforcement Directorate investigates policy violations. This initiative aims to clarify FDI policies and encourage foreign investment.