Foreign investment control broadened; downstream notifications and share swap valuation conditions imposed for regulatory compliance. The notification amends FEMA definitions and procedures: control is broadened to include appointment and management control including for LLPs; all forms of overseas securities and convertible instruments are treated as foreign investment; downstream investments must be notified to SIA, DIPP and FIPB within thirty days even if shares are not allotted; share-swap entries into automatic route sectors are allowed subject to valuation by a SEBI-registered Merchant Banker or an appropriately registered foreign Investment Banker; sectoral FDI conditions for defence, single brand retail and duty free shops are revised and FIIs/FPIs in CICs cannot seek board representation based on shareholding.
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Provisions expressly mentioned in the judgment/order text.
Foreign investment control broadened; downstream notifications and share swap valuation conditions imposed for regulatory compliance.
The notification amends FEMA definitions and procedures: control is broadened to include appointment and management control including for LLPs; all forms of overseas securities and convertible instruments are treated as foreign investment; downstream investments must be notified to SIA, DIPP and FIPB within thirty days even if shares are not allotted; share-swap entries into automatic route sectors are allowed subject to valuation by a SEBI-registered Merchant Banker or an appropriately registered foreign Investment Banker; sectoral FDI conditions for defence, single brand retail and duty free shops are revised and FIIs/FPIs in CICs cannot seek board representation based on shareholding.
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