TaxTMI 
TaxTMI 
Introduction of Composite Caps for Simplification of Foreign Direct Investment (FDI) policy to attract foreign investment
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.... 2A (FPI), 3 (NRI), 6 (FVCI), 8 (QFI), 9 (LLPs) and 10 (DRs) of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations. FCCBs and DRs having underlying of instruments which can be issued under Schedule 5, being in the nature of debt, shall not be treated as foreign investment. However, any equity holding by a person resident outside India resulting from conversion of any debt instrument under any arrangement shall be reckoned as foreign investment. 3. Para 4.1.2 of the Consolidated FDI Policy Circular of 2015, is amended to read as under: 4.1.2 For the purpose of computation of indirect foreign investment, foreign investment in an Indian company shall include all types of foreign investments regardless of whether the said investments have been made under Schedule 1 (FDI), 2 (FII holding as on March 31), 2A (FPI holding as on March 31), 3 (NRI), 6 (FVCI), 8 (QFI holding as on March 31), 9 (LLPs) and 10 (DRs) of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations. FCCBs and DRs having underlying of instruments which can be issued under Schedule 5, being in the nature of debt, shall not be treated as foreign ....
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....hether the said investments have been made under Schedule 1 (FDI), 2 (FII), 2A (FPI), 3 (NRI), 6 (FVCI), 8 (QFI), 9 (LLPs) and 10 (DRs) of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations. FCCBs and DRs having underlying of instruments which can be issued under Schedule 5, being in the nature of debt, shall not be treated as foreign investment. However, any equity holding by a person resident outside India resulting from conversion of any debt instrument under any arrangement shall be reckoned as foreign investment under the composite cap. Sectoral cap is as per Annexure referred above. (c) Foreign investment in sectors under Government approval route resulting in transfer of ownership and/or control of Indian entities from resident Indian citizens to non-resident entities will be subject to Government approval. Foreign investment in sectors under automatic route but with conditionalities, resulting in transfer of ownership and/or control of Indian entities from resident Indian citizens to non-resident entities, will be subject to compliance of such conditionalities. (d) The sectors which are already under 100% automat....
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....s caps and entry routes in various sectors as per Consolidated FDI Policy Circular of 2015 Para No. of Consolidated FDI Policy Circular of 2015 Sector/Activity Foreign Investment Cap (%) Route Agriculture 6.2.1 Agriculture & Animal Husbandry (a) Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions; (b) Development and Production of seeds and planting material; (c) Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions; and (d) Services related to agro and allied sectors Note: Besides the above, FDI is not allowed in any other agricultural sector/activity 100% Automatic 6.2.2 Tea Plantation 6.2.2.1 Tea sector including tea plantations Note: Besides the above, FDI is not allowed in any other plantation sector/activity 100% Government Mining and Petroleum & Natural Gas 6.2.3 Mining 6.2.3.1 Mining and Exploration of metal and non-metal ores including diamond, gold, silver and precious ores but exc....
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....49% Above 49% to Cabinet Committee on Security (CCS) on case to case basis, wherever it is likely to result in access to modern and 'state-of-art' technology in the country. Services Sector Information Services 6.2.7 Broadcasting 6.2.7.1 Broadcasting Carriage Services 6.2.7.1.1 (1) Teleports (setting up of up-linking HUBs/Teleports); (2) Direct to Home (DTH); (3) Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability); (4) Mobile TV; (5) Headend-in-the Sky Broadcasting Service(HITS) 74% Automatic up to 49% Government route beyond 49% and upto 74% 6.2.7.1.2 Cable Networks (Other MSOs not undertaking upgradation of networks towards digitalization and addressability and Local Cable Operators (LCOs)) 49% Automatic 6.2.7.2 Broadcasting Content Services 6.2.7.2.1 Terrestrial Broadcasting FM (FM Radio), subject to such terms and conditions, as specified from time to time, by Ministry of I....
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....n Post Office Act, 1898 and excluding the activity relating to the distribution of letters. 100% Automatic 6.2.11 Construction Development: Townships, Housing, Built-up infrastructure 6.2.11.1 Construction-development projects (which would include development of townships, construction of residential/commercial premises, roads or bridges, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure, townships) 100% Automatic 6.2.12 Industrial Parks - new and existing 100% Automatic 6.2.13 Satellites-establishment and operation 6.2.13.1 Satellites-establishment and operation, subject to the sectoral guidelines of Department of Space/ISRO 74% Government 6.2.14 Private Security Agencies 49% Government 6.2.15 Telecom Services (including Telecom Infrastructure Providers Category-I) All telecom services including Telecom Infrastructure Providers Category-I, viz. Basic, Cellular, United Access Services, Unified License (Access Services), Unified License, National/International Long Distance, Commercial V-Sat, Pu....
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.... placements, GDR/ADRs and acquisition of shares from existing shareholders. 74% (FII/FPI/QFI upto 49%) Automatic up to 49% Government route beyond 49% and upto 74% 6.2.18.3 Banking- Public Sector 6.2.18.3.1 Banking- Public Sector subject to Banking Companies (Acquisition & Transfer of Undertakings) Acts 1970/80. This ceiling (20%) is also applicable to the State Bank of India and its associate Banks. 20% Government 6.2.18.4 Commodity Exchanges 6.2.18.4.2 Commodity Exchange 49% Automatic 6.2.18.5 Credit Information Companies (CIC) 6.2.18.5.1 Credit Information Companies 74% Automatic 6.2.18.6 Infrastructure Company in the Securities Market 6.2.18.6.1 Infrastructure companies in Securities Markets, namely, stock exchanges, depositories and clearing corporations, in compliance with SEBI Regulations 49% Automatic 6.2.18.7 Insurance 6.2.18.7.1 (i) Insurance Company (ii) Insurance Brokers (iii) Third Party Administrators (iv) Surveyors and Loss Assessors (v) Other....