RBI's Tenth Amendment Clarifies Total Foreign Investment Rules, Excludes FCCBs and DRs; Sets Sectoral Caps and Compliance

The Reserve Bank of India issued the Tenth Amendment to the Foreign Exchange Management Regulations, 2000, concerning the transfer or issue of securities by persons residing outside India. The amendments clarify that total foreign investment includes all types of foreign investments, direct and indirect, except for Foreign Currency Convertible Bonds (FCCBs) and Depository Receipts (DRs) with debt instruments. The amendment also outlines conditions for sectoral caps, government approvals, and compliance requirements in various sectors, including agriculture, mining, petroleum, defense, broadcasting, print media, civil aviation, construction, telecom, trading, financial services, pharmaceuticals, and railway infrastructure. These regulations aim to streamline foreign investment processes and ensure compliance with existing policies and laws.

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