TMI BlogIntroduction of Composite Caps for Simplification of Foreign Direct Investment (FDI) policy to attract foreign investmentX X X X Extracts X X X X X X X X Extracts X X X X ..... (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 investment. However, any equity holding by a per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), 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% automatic route and are without conditionalities would not be affected. (e) Notwithstanding anything contain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exploration of oil and the discovered fields of national oil companies. 100% Automatic 6.2.4.2 Petroleum refining by the Public Sector Undertakings (PSU), without any disinvestment or dilution of domestic equity in the existing PSUs. 49% Automatic 6.2.5 Manufacturing 100% Automatic 6.2.6 Defence 6.2.6.1 Defence Industry subject to Industrial license under the Industries (Development Regulation) Act, 1951 49% (Portfolio investment by FPIs/Flls/N RIs/QFIs and investments by FVCIs up to 24%) Government route up to 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 100% Government 6.2.8.4 Publication of facsimile edition of foreign newspapers 100% Government 6.2.9 Civil Aviation 6.2.9.2 Airports ( a ) Greenfield projects 100% Automatic ( b ) Existing projects 100% Automatic up to 74% Government route beyond 74% 6.2.9.3 Air Transport Services (1) Scheduled Air Transport Service/Domestic Scheduled Passenger Airline 49% (100% for NRIs) Automatic (2) Non-Scheduled Air Transport Service 74% (100% for NRIs) Automatic up to 49% Government route beyond 49% and upto 74% (3) Helicopter services/seaplane services requiring DGCA approval 100% Automatic 6.2.9.3.1 Foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS), All types of ISP licenses, Voice Mail/Audiotex/UMS, Resale of IPLC, Mobile Number Portability Services, Infrastructure Provider Category-I (providing dark fibre, right of way, duct space, tower) except Other Service Providers. 100% Automatic up to 49% Government route beyond 49% 6.2.16 Trading 6.2.16.1 Cash Carry Wholesale Trading/Wholesale Trading (including sourcing from MSEs) 100% Automatic 6.2.16.2 B2B E-commerce activities 100% Automatic 6.2.16.3 Single Brand product retail trading 100% Automatic up to 49% Government route beyond 49% 6.2.16.4 Multi Brand Retail Trading 51% Government 6.2.17 Railway infrastructure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Insurance Intermediaries appointed under the provisions of Insurance Regulatory and Development Authority Act, 1999(41 of 1999) 49% Automatic up to 26% Government route beyond 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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