Department of Industrial Policy and Promotion Ministry of Commerce and Industry Government of India Consolidated FDI Policy (Effective from August 28, 2017) Government of India Ministry of Commerce & Industry Department of Industrial Policy & Promotion Consolidated FDI Policy Circular of 2017 Subject: Consolidated FDI Policy The “Consolidated FDI Policy” is attached. 2. This Circular will take effect from August 28, 2017 (Atul Chaturvedi) Additional Secretary to the Government of India D/o IPP F. No. 5(1)/2017-FC-1 Dated the August 28, 2017 Copy forwarded to: 1. Press Information Officer, Press Information Bureau- for giving wide publicity to the above circular. 2. NIC, DIPP for uploading the Circular on DIPP's website. 3. Department of Economic Affairs, Ministry of Finance, New Delhi. 4. Reserve Bank of India, Mumbai. 5. Hindi Section for Hindi Translation. 1 Contents Chapter 1: Intent and Objective ................................................................................................... 4 1.1 Intent and Objective ................................................................................................................ 4 Chapter 2: Definitions .................................................................................................................. 5 2.1 Definitions ................................................................................................................................. 5 Chapter 3: General Conditions on FDI .......................................................................................11 3.1 Eligible investors ......................................................................................................................11 3.2 Eligible investee entities ..........................................................................................................12 3.3 Instruments of investments, issue/transfer of shares etc. .........................................................15 3.4 Entry Routes for Investment ....................................................................................................15 3.5 Caps on Investments ...............................................................................................................16 3.6 Entry Conditions on Investment ...............................................................................................16 3.7 Other Conditions on Investment besides Entry Conditions ......................................................16 3.8 Foreign Investment into/downstream Investment by eligible Indian entities .............................17 3.9 Remittance, Reporting and Violation………………………,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,……….………..18 Chapter 4: Procedure for Government Approval ......................................................................19 4.1 Competent Authority ................................................................................................................19 4.2 Cases which do not require Fresh Approval ............................................................................20 4.3 Online Filing of Applications for Government Approval ............................................................21 Chapter 5: Sector Specific Conditions on FDI .........................................................................22 5.1 Prohibited Sectors ...................................................................................................................22 5.2 Permitted Sectors ....................................................................................................................22 Agriculture ..................................................................................................................................23 5.2.1 Agriculture & Animal Husbandry ...........................................................................................23 5.2.2 Plantation Sector ..................................................................................................................24 Mining and Petroleum & Natural Gas .........................................................................................24 5.2.3 Mining ...................................................................................................................................24 5.2.4 Petroleum & Natural Gas ......................................................................................................26 Manufacturing ..............................................................................................................................26 5.2.5 Manufacturing: ......................................................................................................................26 5.2.6 Defence ................................................................................................................................26 Services Sector ...........................................................................................................................27 5.2.7 Broadcasting .........................................................................................................................27 5.2.8 Print Media ...........................................................................................................................28 5.2.9 Civil Aviation .........................................................................................................................29 5.2.10 Construction Development: Townships, Housing, Built-up Infrastructure ............................32 5.2.11Industrial Parks ....................................................................................................................34 2 5.2.12 Satellites- establishment and operation ..............................................................................34 5.2.13 Private Security Agencies ...................................................................................................35 5.2.14 Telecom Services ...............................................................................................................35 5.2.15 Trading ...............................................................................................................................36 5.2.16 Railway Infrastructure .........................................................................................................43 Financial Services .......................................................................................................................43 5.2.17 Asset Reconstruction Companies .......................................................................................43 5.2.18 Banking- Private Sector ......................................................................................................44 5.2.19 Banking- Public Sector .......................................................................................................45 5.2.20Credit Information Companies (CIC) ....................................................................................45 5.2.21 Infrastructure Company in the Securities Market.................................................................45 5.2.22 Insurance ............................................................................................................................47 5.2.23 Pension Sector ...................................................................................................................48 5.2.24 Power Exchanges ...............................................................................................................49 5.2.25 White Label ATM Operations ..............................................................................................49 5.2.26 Other Financial Services .....................................................................................................50 Others ...........................................................................................................................................50 5.2.27 Pharmaceuticals .................................................................................................................50 Annexures ....................................................................................................................................53 Annexure-1 Form FC-GPR ............................................................................................................53 Annexure-2 Types of Instruments ..................................................................................................61 Annexure-3 Provisions Relating to Issue/Transfer of Shares………………………………………….63 Annexure-4 Specific Conditions in Certain Cases ..........................................................................74 Annexure-5.Total Foreign Investment i.e. Direct and Indirect Foreign Investment in eligible Indian entities ...........................................................................................................................................77 Annexure-6..Remittance, Reporting and Violation .........................................................................81 Annexure-7 Conditions for Broadcasting Sector .......................................................................... 106 Annexure-8 Conditions for Industrial Parks .................................................................................. 109 Annexure-9 Permissible limits under portfolio investment schemes through stock exchanges for FIIs/FPIs and NRIs .....................................................................................................................