| Date: |
22-01-2015
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| Notification No: |
RBI/2014-15/420 A.P. (DIR Series) Circular No. 60
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/420 |
| Subject: |
Foreign Direct Investment (FDI) in India – Review of FDI policy –Sector Specific conditions- Construction Development
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RBI/2014-15/420
A.P. (DIR Series) Circular No. 60
January 22, 2015
To
All Category – I Authorised Dealer banks
Madam/Sir,
Foreign Direct Investment (FDI) in India – Review of FDI policy –Sector
Specific conditions- Construction Development
Attention of Authorised Dealer Category – I (AD Category-I) banks is invited to
Annex B of Schedule 1 to the Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident outside India) Regulations, 2000 notified vide
Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to
time. In terms of Schedule 1 to the Notification ibid, 100% Foreign Direct
Investment (FDI) is permitted under Automatic route in Construction Development
sector subject to conditions.
- The extant FDI policy for Construction Development sector has since
been reviewed. Accordingly, effective December 3, 2014 100% FDI under
automatic route shall be permitted in construction development sector
subject to the conditions specified in the Press Note 10 (2014 Series) dated
December 3, 2014.
- A copy of Press Note No.10 (2014 Series) dated December 3, 2014 issued in
this regard by DIPP, Ministry of Commerce & Industry, Government of India is
appended.
- Reserve Bank has since amended the Principal Regulations through the
Foreign Exchange Management (Transfer or Issue of Security by a Person
Resident outside India) (Sixteenth Amendment) Regulations, 2014 notified
vide
Notification No. FEMA.329/2014-RB dated December 8, 2014, c.f. G.S.R.
No. 906(E) dated December 22, 2014.
- Authorised Dealer banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
- 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,
(B.P. Kanungo)
Principal Chief General Manager
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