Lottery Business including Government/private lottery,
online lotteries, etc.
Gambling and Betting including casinos etc.
Trading in Transferable Development Rights (TDRs)
Real Estate Business or Construction of Farm Houses ‘Real estate business’ shall not include
development of townships, construction of
residential /commercial premises, roads or bridges and Real Estate Investment
Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014.
Manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco
or of tobacco substitutes
Activities/sectors not open to private
sector investment e.g.(I) Atomic Energy and (II) Railway
collaboration in any form including licensing for franchise,
trademark, brand name, management contract is also prohibited for Lottery
Business, Gambling and Betting activities.
In the following sectors/activities, FDI up to the limit
indicated against each sector/activity is allowed, subject to applicable
laws/regulations; security and other conditionalities. In sectors/activities
not listed below, FDI is permitted up to100% on the automatic route, subject to
applicable laws/regulations; security and other conditionalities. Wherever
there is a requirement of minimum capitalization, it shall include share premium received
along with the face value of the share, only when it is
received by the company upon issue of the shares to the non-resident investor. Amount
paid by the transferee during
post-issue transfer of shares beyond
the issue price
of the share, cannot be taken
into account while calculating minimum capitalization requirement.
Sectoral cap i.e. the maximum
amount which can be invested
by foreign investors
in an entity, unless provided
otherwise, is composite and includes all types of foreign investments, direct
and indirect, regardless of whether the said investments have been made
under Schedules I (FDI), II (FPI), III (NRI), VI (LLPs), VII (FVCI),
and IX (DRs), respectively, of Foreign Exchange Management (Non-Debt
Instruments) Rules, 2019.
FCCBs and DRs having underlying of instruments which can be issued
under Schedule IX, 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
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.
The sectors which are already under 100% automatic
route and are without conditionalities would not be affected.
Notwithstanding anything contained in paragraphs a) and
c) above, portfolio investment, up to aggregate foreign
investment level as permitted under
Schedule II of
Foreign Exchange Management (Non-Debt Instruments) Rules,
2019 will not be subject to either Government approval
or compliance of sectoral conditions, as the case may be, if such investment does not result in
transfer of ownership and/or control of Indian entities from resident
Indian citizens to non-resident entities. Other foreign investments
will be subject to conditions of Government approval and compliance of
sectoral conditions as laid down in the FDI
Total foreign investment, direct and indirect, in an entity
will not exceed the sectoral/statutory cap.
Any existing foreign investment already made in
accordance with the policy in existence would not require any modification to
conform to amendments introduced through Press Note 8 (2015 Series).
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.
The onus of compliance of above provisions will be on
the investee company.