<h1>India Seeks Public Input on FDI Policy Caps, Considers Sector-Specific Regulations and Mandatory Local Listings for Multinationals.</h1> The discussion paper invites public views on the rationale and relevance of foreign direct investment (FDI) policy caps in India. It reviews the evolution of FDI policy across four phases, highlighting shifts from cautious regulation to liberalization. The paper examines the impact of equity caps, which limit foreign ownership in various sectors, and questions their current relevance given the ability to bypass them through indirect investments. It suggests that sector-specific regulations might better address concerns traditionally managed by caps. The paper also explores the potential benefits of requiring multinational companies to list on Indian stock exchanges to enhance transparency and reduce arbitrage opportunities.