Consolidated FDI Policy
Circular of 2016
Consolidated FDI Policy Circular is a policy framework
on Foreign Direct Investment, which consolidates all Press Notes/Press
Releases/Clarifications/ Circulars issued by DIPP, which are in force.
The first Circular was issued in March, 2010, which has been updated
periodically. The last such Circular was released on 12.05.2015.
‘Consolidated FDI Policy Circular of 2016’ is the ninth edition of the series.
Consolidated FDI Policy Circular of 2016 incorporates
all FDI policy amendments carried out since the release of last FDI Circular
i.e. since May 12, 2015. FDI Policy Circular, 2016 has been made simpler and investor
friendly; and will serve as a ready reference for foreign investors on various
provisions of the FDI policy
The significant changes introduced in this edition of
the Circular are:
The clauses corresponding to the following Press Notes
have been incorporated in the Consolidated FDI Policy Circular of 2016:
|
S.No. |
Issue |
Press Note |
|
a) |
Investment Limit for Cases involving FIPB/CCEA
approval |
6 of 2015 Series |
|
b) |
Investment by NRIs, PIOs and OCIs |
7 of 2015 Series |
|
c) |
Introduction of Composite Caps |
8 of 2015 Series |
|
d) |
Partly Paid Shares and Warrants |
9 of 2015 Series |
|
e) |
FDI in White Label ATM Operations |
11 of 2015 Series |
|
f) |
Review of FDI Policy on Various Sectors |
12 of 2015 Series |
|
g) |
Review of FDI Policy on Insurance Sector |
1 of 2016 Series |
|
h) |
Review of FDI Policy on Pension Sector |
2 of 2016 Series |
|
i) |
Guidelines for Foreign Direct Investment (FDI) on
E-commerce |
3 of 2016 Series |
|
j) |
Review of FDI Policy on Asset Reconstruction
Companies |
4 of 2016 Series |
RBI vide Notification No. 355/2015RB dated November
16, 2015 has enabled/facilitated foreign investment in Real Estate Investment
Trusts (REITs) registered under SEBI (REITs) Regulation, 2014, Infrastructure
Investment Trust (InvITs) registered and regulated
under SEBI (InvITs) Regulation 2014 and Alternative
Investment Fund (AIF) registered under SEBI (AIF) Regulations, 2012. The change
has been incorporated at para 1.3 of FDI Circular, 2016.
Definition of “Employees’ Stock Option” has been
incorporated at para 2.1.9 of FDI Circular, 2016.
Definition of “Investment Vehicle” has been
incorporated at para 2.1.23 of FDI Circular, 2016.
Definition of “Sweat Equity Shares” has been
incorporated at para 2.1.43 of FDI Circular, 2016.
Definition of “Unit” has been incorporated at para
2.1.45 of FDI Circular, 2016.
Clause relating to Issue of Shares Under
Employees Stock Option Scheme has been amended to include issuance of Sweat
Equity Shares also. (Para 5 of Annexure 4).
“Investment Vehicle” has been added as an eligible
investee entity by adding new para 3.2.5.
FDI Policy on ‘Private Security Agencies’ has been
clarified by incorporating definitions of "Private Security Agency",
"Private Security" and "Armoured Car Service" (Para
5.2.13.1).
Non Resident Indians have been made eligible for
subscription to National Pension System governed and administered by Pension
Fund Regulatory and Development Authority (Para 3.1.8).