Foreign Direct Investment (FDI) in Construction Development Sector - FEMA - 007

Foreign Direct Investment (FDI) in Construction Development Sector RBI/2005/127 A.P. (DIR Series) Circular No. 07 August 17, 2005 To, All Banks Authorised to Deal in Foreign Exchange Madam/Sir, Foreign Direct Investment (FDI) in Construction Development Sector Attention of Authorised Dealer (AD) banks is invited to Schedule I of Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time. 2. With a view to catalyzing FDI intownships, housing, built-up infrastructure and construction development projects, Government of India, (Ministry of Commerce Industry), vide Press Note 2 (2005) dated March 3, 2005, has decided to permit FDI upto 100 per cent under the automatic route, intownships, housing, built-up infrastructure and construction development projects (which would include, but not be restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure), subject to the guidelines mentioned therein. 3. Accordingly, Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) Regulations 2000 notified vide Reserve Bank Notification No. FEMA 20/2000-RB dated May 3, 2000, has been amended vide Notification No. FEMA 136/2005-RB dated July 19, 2005 [Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India) (Third Amendment) Regulations 2005]. A copy of the Government Notification G.S.R. No. 513(E) dated July 29, 2005 incorporating the amendment is annexed. 4. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents/customers concerned. 5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (Vinay Baijal) Chief General Manager