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TMI BlogReview of Foreign Direct Investment (FDI) policy on various sectorsX X X X Extracts X X X X X X X X Extracts X X X X ..... eplaced with the following: 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. Existing Para 5.2 (h) shall be renumbered as 5.2 (i) 3. Foreign investment into an Indian company engaged only in the activity of investing in the capital of other Indian company/ies (A) Para 3.8.3.1 of FDI Policy is amended to read as under: Foreign Investment in Investing Companies registered as Non-Banking Financial Companies (NBFC) with the Reserve Bank of India, being overall regulated, would be under 100% a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s added to Other Conditions laid down at Para 5.2.9 of FDI policy: (d) In addition to the above conditions, foreign investment in M/S Air India Ltd. shall be subject to the following conditions: (i) Foreign investment(s) in M/S Air India Ltd., including that of foreign airline(s), shall not exceed 49% either directly or indirectly. (ii) Substantial ownership and effective control of M/S Air India Ltd. shall continue to be vested in Indian Nationals. 6. Construction Development: Townships, Housing, Built-up Infrastructure and Real Estate Broking: Following new clause (vi) is added after Note (v) at Para 5.2.10.2 of FDI Policy: Para 5.2.10.2 Note (vi): Notwithstanding anything contained in Para 5.2.10 above, it is cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the specific brand, either directly by the brand owner or through a legally tenable agreement executed between the Indian entity undertaking single brand retail trading and the brand owner. (e) In respect of proposals involving foreign investment beyond 51%, sourcing of 30% of the value of goods purchased, will be done from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, in all sectors. The quantum of domestic sourcing will be self-certified by the company, to be subsequently checked, by statutory auditors, from the duly certified accounts which the company will be required to maintain. This procurement requirement would have to be met, in the first instance, as an average of five years' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Para 5.2.15.3 (2) (b) 5.2.15.3 (2)(d) will not be applicable for undertaking SBRT of Indian brands. (ii) Indian brands should be owned and controlled by resident Indian citizens and/or companies which are owned and controlled by resident Indian citizens. (iii) Sourcing norms will not be applicable up to three years from commencement of the business i.e. opening of the first store for entities undertaking single brand retail trading of products having 'state-of-art' and 'cutting-edge' technology and where local sourcing is not possible. Thereafter, provisions of Para 5.2.15.3 (2) (e) will be applicable. A Committee under the Chairmanship of Secretary, DIPP, with representatives from NITI Aayog, concerned Admin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cological or immunological or metabolic means, but which may be assisted in its intended function by such means; (b) an accessory to such an instrument, apparatus, appliance, material or other article; (c) in-vitro diagnostic device which is a reagent, reagent product, calibrator, control material, kit, instrument, apparatus, equipment or system, whether used alone or in combination thereof intended to be used for examination and providing information for medical or diagnostic purposes by means of examination of specimens derived from the human bodies or animals. (B) Para 5.2.27.3 Note (iii) of FDI Policy which presently reads that the definition of medical device at Note (ii) above would be subject to the amendment in Drugs and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pitalization being made within the period of 180 days from the date of incorporation of the company. General conditions: (i) All requests for conversion should be accompanied by a special resolution of the company. (ii) Government's approval would be subject to pricing guidelines of RBI and appropriate tax clearance. (iii) For sectors under automatic route, issue of equity shares against import of capital goods/ machinery/ equipment (excluding second-hand machinery) and pre-operative/pre-incorporation expenses (including payments of rent etc.) is permitted under automatic route subject to compliance with respective conditions mentioned above, and reporting to RBI in form FC-GPR as per procedure prescribed under the FDI pol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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