| Date: |
03-07-2015
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| Notification No: |
RBI/2015-16/116 A.P. (DIR Series) Circular No.2
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
A.P. (DIR Series) Circular No.2 |
| Subject: |
Investment in companies engaged in tobacco related activities
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RBI/2015-16/116
A.P. (DIR Series) Circular No. 2
July 3, 2015
To
All Authorised Persons
Madam/ Sir,
Investment in companies engaged in tobacco related activities
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to
Annex A 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, and
Notification No. FEMA.
242/2012- RB dated October 19, 2012.
- In terms of the above regulations foreign direct investment is
prohibited in manufacturing of cigars, cheroots, cigarillos and cigarettes,
of tobacco or of tobacco substitutes.
- It is clarified that the prohibition applies only to manufacturing of the
products mentioned therein and foreign direct investment in other activities
relating to these products including wholesale cash and carry, retail
trading etc. shall be governed by the sectoral restrictions laid down in the
FDI policy framed by the Department Of Industrial Policy & Promotion,
Ministry of Commerce and Industry, Government of India and in the Schedule 1
of Foreign Exchange Management (Transfer or Issue of Security by a Person
Resident outside India) Regulations, 2000 as amended from time to time.
- AD Category – I 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,
(A.K.Pandey)
Chief General Manager
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