<h1>New FDI Policy 2012: Liberalizes Commodity Exchanges, Clarifies NBFCs, Excludes Old Machinery, Eases Retail & Pharma Rules.</h1> The fifth edition of the consolidated Foreign Direct Investment (FDI) policy, Circular 1 of 2012, introduces significant changes. It liberalizes FDI in commodity exchanges by requiring government approval only for the FDI component, aligning with other securities market infrastructure. It clarifies that FDI in Non-Banking Finance Companies (NBFCs) covers only financial leases. Second-hand machinery is excluded from equity conversion incentives to promote state-of-the-art technology. Foreign Institutional Investors (FIIs) and Foreign Venture Capital Investors (FVCIs) face clarified investment limits and permissions. The policy also liberalizes single-brand retail trading and pharmaceuticals sector FDI, allowing up to 100% investment under specified conditions. Future FDI policy updates will be issued annually.