| Date: |
02-02-2015
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| Notification No: |
RBI/2014-15/441 A.P.(DIR Series) Circular No.70
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/441 |
| Subject: |
Foreign Direct Investment in Pharmaceuticals sector – Clarification
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RBI/2014-15/441
A.P.(DIR Series) Circular No.70
February 02, 2015
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Foreign Direct Investment in Pharmaceuticals sector – Clarification
Attention of Authorised Dealers Category – I (AD Category - I) banks is invited
to
A.P. (DIR Series) Circular No.124 dated April 21, 2014 and 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, Foreign Direct Investment (FDI) up to 100 per cent is
permitted under automatic route for greenfield investments and FDI up to 100 per
cent is permitted under Government approval route for brownfield investments
(i.e. investments in existing companies) in pharmaceuticals sector.
- The extant FDI policy for pharmaceutical sector has since been
reviewed and it has now been decided with immediate effect that there would
be a special carve out for medical devices which was earlier given the same
treatment as pharmaceutical sector.
- A copy of Press Note No.2 (2015 Series) dated January 6, 2015 issued in
this regard by Department of Industrial Policy and Promotion, Ministry of
Commerce & Industry, Government of India is enclosed.
- AD Category - I banks may bring the contents of the circular to the
notice of their customers/constituents concerned.
- Reserve Bank has since amended the subject Regulations accordingly
through the Foreign Exchange Management (Transfer or Issue of Security by a
Person Resident outside India) (Amendment) Regulations, 2015 which have been
notified vide
Notification No.FEMA.334/2015-RB dated January 9, 2015, vide
G.S.R. No. 30(E) dated January 14, 2015.
- 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,
(J K Pandey)
General Manager Officer-in-Charge
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