RBI/2009-10/22
Master Circular No.01/2009-10
July 01, 2009
To,
All Category - I Authorised Dealer banks
Madam / Sir,
Master Circular on Foreign Investment in India
Foreign investment in India is governed by sub-section (3) of Section 6 of the
Foreign Exchange Management Act, 1999 read with Notification No. FEMA 20/2000-RB
dated May 3, 2000, as amended from time to time. The regulatory framework and
instructions issued by the Reserve Bank have been compiled in this Master
Circular. The list of underlying circulars/notifications is furnished in
Appendix. In addition to the above, this Master Circular also covers the
following areas:
- Acquisition of immovable property which is regulated in terms of Section
6(3) (i) of Foreign Exchange Management Act, 1999 read with Notification No.
FEMA 21/ 2000-RB dated May 3, 2000;
- Establishment of Branch/Liaison Office in India, which is regulated in
terms of Section 6(6) of Foreign Exchange Management Act, 1999 read with
Notification No.
FEMA 22/ 2000-RB dated May 3, 2000;
- Investment in capital of partnership firms or proprietary concern which is
regulated in terms of Section 2(h) of Section 47 of Foreign Exchange Management
Act, 1999, read with Notification No. FEMA 24/2000-RB dated May 3, 2000.
2. This
Master Circular is being issued with a sunset clause of one year. This
circular will stand withdrawn on July 1, 2010 and be replaced by an updated
Master Circular on the subject.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge