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TMI BlogForeign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Tenth Amendment) Regulations, 2014X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014. (ii) They shall be deemed to have come into force from April 17, 2014@ 2. Amendment of Schedule 1 In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 , ( Notification No. FEMA. 20/2000-RB dated 3rd May 2000 ), in Annex B , a). in the heading, for the words and figures, % of Cap/Equity , the words and figures, % of Equity/FDI Cap shall be substituted; b). for the existing entry 1.1. II, the following shall be substituted, namely: II. The term under controlled conditions covers the following: (i) Cultivation under controlled conditions for the categories of Floriculture, Horticulture, Cultivation of vegetables and Mushrooms is the practice of cultivation wherein rainfall, temperature, solar radiation, air humidity and culture medium are controlled artificially. Control in these parameters may be effected through protected cultivation under green houses, net houses, poly houses or any other improved infrastructure facilities where micro- climatic conditions are regulated anthropogenically. (ii) In case of Animal Husbandry, scope of the te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of ₹ 1200 crore being approved by Cabinet Committee on Economic Affairs (CCEA). Applications seeking permission of the Government for FDI beyond 26%, will in all cases be examined additionally by the Department of Defence Production (DoDP) from the point of view particularly of access to modern and 'state-of-art' technology. (xvii) Based on the recommendation of the DoDP and FIPB, approval of the Cabinet Committee on Security (CCS) will be sought by the DoDP in respect of cases which are likely to result in access to modern and 'state-of-art' technology in the country. (xviii) Proposals for FDI beyond 26% with proposed inflow in excess of ₹ 1200 crores, which are to be approved by CCS will not require further approval of the Cabinet Committee of Economic Affairs (CCEA). (xix) Government decision on applications to FIPB for FDI in defence industry sector will be normally communicated within a time frame of 10 weeks from the date of acknowledgement. e). for the existing entry 7.5, the following shall be substituted, namely: 7.5 The foreign investment (FI) limit in companies engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g) for the existing entry 9.3.1(c), the following shall be substituted, namely: 9.3.1 (c) Foreign airlines are also, allowed to invest, in the capital of Indian companies, operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital. Such investment would be subject to the following conditions: (i) It would be made under the Government approval route. (ii) The 49% limit will subsume FDI and FII/FPI investment. (iii) The investments so made would need to comply with the relevant regulations of SEBI, such as the Issue of Capital and Disclosure Requirements (ICDR) Regulations/ Substantial Acquisition of Shares and Takeovers (SAST) Regulations, as well as other applicable rules and regulations. (iv) A Scheduled Operator's Permit can be granted only to a company: a) that is registered and has its principal place of business within India; b) the Chairman and at least two-thirds of the Directors of which are citizens of India; and c) the substantial ownership and effective control of which is vested in Indian nationals. (v) All foreign nationals l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Single Brand product retail trading 100% Automatic up to 49%. Government route beyond 49% (3) Applications seeking permission of the Government for FDI exceeding 49% in a company which proposes to undertake single brand retail trading in India would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy Promotion. The applications would specifically indicate the product/ product categories which are proposed to be sold under a Single Brand . Any addition to the product/ product categories to be sold under Single Brand would require a fresh approval of the Government. In case of FDI upto 49%, the list of products/ product categories proposed to be sold except food products would be provided to the RBI. l). for the existing entries 17.1 and 17.2, the following shall be substituted, namely: 17.1 Asset Reconstruction Company (ARC) means a company registered with the Reserve Bank of India under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the FII/FPI/QFI investment limit will continue to be within 49 per cent of the total paid-up capital. (d) Transfer of shares under FDI from residents to non-residents will continue to require approval of RBI and Government as per Regulation 14(5) as applicable. n). for the existing entries 20.2 and 20.3(iii), the following shall be substituted respectively, namely: 20.2 Commodity Exchange 49% (FDI FII/FPI) [Investment by Registered FII /FPI under Portfolio Investment Scheme (PIS) will be limited to 23% and Investment under FDI Scheme limited to 26% ] Automatic 20.3 Other conditions: (iii) Foreign investment in commodity exchanges will be subject to the guidelines of the Central Government / Forward Markets Commission (FMC). o). for the existing entries 21.2(2) and 21.2(4)(a), the following shall be substituted respectively, namely: 21.2 Other Conditions: (2) Foreign investment is permitted subject to regulatory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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