Rationalisation of the FDI Policy

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tudy & formulation and Investment financing in the Petroleum & Natural Gas sector; and • vii. cash & carry wholesale trading and export trading. b. To increase FDI caps to 100% and permit it under the automatic route for: • i. coal & lignite mining for captive consumption; • ii. setting up infrastructure relating to marketing in Petroleum & Natural Gas sector; and • iii. exploration and mining of diamonds & precious stones. c. To allow FDI up to 100% under the automatic route in i. power trading subject to compliance with Regulations under the Electricity Act, 2003; ii. processing and warehousing of coffee and rubber. d. To allow FDI up to 51 % with prior Government approval for retail trade of 'Single Brand' products, detailed guidelines for which have been notified vide Press Note 3 (2006 Series). e. To allow under the automatic route transfer of shares from residents to non-residents in financial services, and where Securities & Exchange Board of India (Substantial Acquisition and Takeover) Regulations are attracted, in cases where approvals are required from the Reserve Bank of India/ Securities & Exchange Bo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... PN 4 / 2006 4. Asset Reconstruction Companies 49% (only FDI) FIPB Where any individual investment exceeds 10% of the equity, provisions of Section 3(3)(f) of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 should be complied with. www.finmin.nic.in   5. Atomic Minerals 74% FIPB Subject to guidelines issued by Department of Atomic Energy vide Resolution No. 8/1(1)/97-PSU/1422 dated 6.10.98.   6. Banking - Private sector 74% (FDI+FII) Automatic Subject to guidelines for setting up branches/ subsidiaries of foreign banks issued by RBI. www.rbi.org.in PN 2 / 2004 7. Broadcasting         a. FM Radio FDI +FII investment up to 20% FIPB Subject to Guidelines notified by Ministry of Information & Broadcasting www.mib.nic.in PN 6 / 2005 b. Cable network 49% (FDI+FII) FIPB Subject to Cable Television Network Rules (1994) Notified by Ministry of Information & Broadcasting www.mib.nic.in   c. Direct-To-Home 49% (FDI+FII). Within this limit, FDI component not to exceed 20% ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....;         [Note: For investment by NRIs, the conditions mentioned in Press Note 2 / 2005 are not applicable.]   PN 2 / 2005 & PN 2 / 2006 12. Courier services for carrying packages, parcels and other items which do not come within the ambit of the Indian Post Office Act, 1898. 100% FIPB Subject to existing laws and exclusion of activity relating to distribution of letters, which is exclusively reserved for the State. www.indiapost.gov.in PN 4 / 2001 13. Defence production 26% FIPB Subject to licensing under Industries (Development & Regulation) Act, 1951 and guidelines on FDI in production of arms & ammunition. PN 4 / 2001 & PN 2 / 2002 14. Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisciculture, aqua-culture, cultivation of vegetables,, mushrooms, under controlled conditions and services related to agro and allied sectors. 100% Automatic   PN 4 / 2006 15. Hazardous chemicals, viz., hydrocyanic acid and its derivatives; phosgene and its derivatives; and isocyanates and di-isocyantes of hydrocarbon. 100% Automatic Subject to i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ove 51% and up to 75%; and US$ 50 million out of which US$ 7.5 million to be brought upfront and the balance in 24 months for FDI beyond 75% and up to 100%.   b. minimum capitalization norms for non-fund based NBFC activities- US$ 0.5 million. c. foreign investors can set up 100% operating subsidiaries without the condition to disinvest a minimum of 25% of its equity to Indian entities subject to bringing in Under Secretary 50 million without any restriction on number of operating subsidiaries without bringing additional capital. d. joint venture operating NBFC's that have 75% or less than 75% foreign investment will also be allowed to set up subsidiaries for undertaking other NBFC activities subject to the subsidiaries also complying with the applicable minimum capital inflow. e. compliance with the guidelines of the RBI. PN 2 / 2000, PN 6 / 2000, & PN 2 / 2001 21. Petroleum & Natural Gas sector         a. Other than Refining and including market study and formulation; investment/ financing; setting up infrastructure for marketing in Petroleum & Natural Gas sector. 100% Automatic Subject to sectoral ....