TaxTMI 
TaxTMI 
Review of Foreign Direct Investment (FDI) policy on various sectors
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (h) of FDI Policy is replaced with the following: Wherever the foreign investor wishes to specify a particular auditor/audit firm having international network for the Indian investee company, then audit of such investee companies should be carried out as joint audit wherein one of the auditors should not be part of the same network. Existing Para 5.2 (h) shall be renumbered as 5.2 (i) 3. Foreign investment into an Indian company engaged only in the activity of investing in the capital of other Indian company/ies (A) Para 3.8.3.1 of FDI Policy is amended to read as under: Foreign Investment in Investing Companies registered as Non-Banking Financial Companies (NBFC) with the Reserve Bank of India, being overall regulated, woul....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... India Ltd. shall be subject to the following conditions: (i) Foreign investment(s) in M/S Air India Ltd., including that of foreign airline(s), shall not exceed 49% either directly or indirectly. (ii) Substantial ownership and effective control of M/S Air India Ltd. shall continue to be vested in Indian Nationals. 6. Construction Development: Townships, Housing, Built-up Infrastructure and Real Estate Broking: Following new clause (vi) is added after Note (v) at Para 5.2.10.2 of FDI Policy: Para 5.2.10.2 Note (vi): Notwithstanding anything contained in Para 5.2.10 above, it is clarified that real-estate broking service does not amount to real estate business and 100% foreign investment is allowed in the activi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....reign investment beyond 51%, sourcing of 30% of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors. The quantum of domestic sourcing will be self-certified by the company, to be subsequently checked, by statutory auditors, from the duly certified accounts which the company will be required to maintain. This procurement requirement would have to be met, in the first instance, as an average of five years' total value of the goods purchased, beginning 1st April of the year of the commencement of the business i.e. opening of the first store. Thereafter, it would have to be met on an annual basis. For the purpose of ascertaining the sourcing req....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d by resident Indian citizens. (iii) Sourcing norms will not be applicable up to three years from commencement of the business i.e. opening of the first store for entities undertaking single brand retail trading of products having 'state-of-art' and 'cutting-edge' technology and where local sourcing is not possible. Thereafter, provisions of Para 5.2.15.3 (2) (e) will be applicable. A Committee under the Chairmanship of Secretary, DIPP, with representatives from NITI Aayog, concerned Administrative Ministry and independent technical expert(s) on the subject will examine the claim of applicants on the issue of the products being in the nature of 'state-of-art' and 'cutting-edge' technology where local....
X X X X Extracts X X X X
X X X X Extracts X X X X
....agnostic device which is a reagent, reagent product, calibrator, control material, kit, instrument, apparatus, equipment or system, whether used alone or in combination thereof intended to be used for examination and providing information for medical or diagnostic purposes by means of examination of specimens derived from the human bodies or animals. (B) Para 5.2.27.3 Note (iii) of FDI Policy which presently reads that "the definition of medical device at Note (ii) above would be subject to the amendment in Drugs and Cosmetics Act", is deleted. 10. Para 6(iv) of Annexure-3 of FDI Policy is amended to read as under: Issue of equity shares for sectors requiring Government approval under the FDI policy is allowed under the Government ....