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RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI-400 001
Notification No. FEMA. 329/2014-RB
Dated December 8, 2014
Foreign Exchange Management (Transfer or Issue of Security by a
Person Resident outside India) (Sixteenth Amendment) Regulations, 2014
In exercise of the powers conferred by clause (b) of sub-section (3) of
Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of
1999), the Reserve Bank of India hereby makes the following amendments in the
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident
outside India) Regulations, 2000 (Notification No. FEMA. 20/2000-RB dated 3rd
May 2000), namely:-
1. Short Title & Commencement:-
(i) These Regulations may be called the Foreign Exchange Management (Transfer or
Issue of Security by a Person Resident Outside India) (Sixteenth Amendment)
Regulations, 2014.
(ii) They shall be deemed to have come into force from December 3, 2014. @
2. Amendment of Schedule 1
In the Foreign Exchange Management (Transfer or Issue of Security by a Person
Resident outside India) Regulations, 2000, (Notification No. FEMA 20/2000-RB
dated 3rd May 2000), in the existing Annex B, for the existing entry 11, 11.1
and 11.2, the following shall be substituted, namely:
| SI. No. |
Sector/Activity |
% of Equity/ FDI Cap |
Entry Route |
| 11 |
Construction Development: Townships, Housing, Built-up infrastructure
|
|
| 11.1 |
Construction-development projects (which would include development
of townships, construction of residential/commercial premises, roads or
bridges, hotels, resorts, hospitals, educational institutions,
recreational facilities, city and regional level infrastructure,
townships) |
100% |
Automatic |
| 11.2 |
Investment will be subject to the following conditions:
(A) Minimum area to be developed under each project would be as under:
In case of development of serviced plots, no minimum land area requirement.
In case of construction-development projects, a minimum floor area of 20,000 sq.
meter.
(B) Investee company will be required to bring minimum FDI of US$ 5 million
within six months of commencement of the project. The commencement of the
project will be the date of approval of the building plan/layout plan by the
relevant statutory authority. Subsequent tranches of FDI can be brought till the
period of ten years from the commencement of the project or before the
completion of project, whichever expires earlier.
(C) (i) The investor will be permitted to exit on completion of the project or
after development of trunk infrastructure i.e. roads, water supply, street
lighting, drainage and sewerage.
(ii) The Government may, in view of facts and circumstances of a case, permit
repatriation of FDI or transfer of stake by one non-resident investor to another
non-resident investor, before the completion of project. These proposals will be
considered by FIPB on case to case basis inter-alia with specific reference to
Note (i).
(D) The project shall conform to the norms and standards, including land use
requirements and provision of community amenities and common facilities, as laid
down in the applicable building control regulations, bye-laws, rules, and other
regulations of the State Government/Municipal/Local Body concerned.
(E) The Indian investee company will be permitted to sell only developed plots.
For the purposes of this policy "developed plots" will mean plots where trunk
infrastructure i.e. roads, water supply, street lighting, drainage and sewerage,
have been made available.
(F) The Indian investee company shall be responsible for obtaining all necessary
approvals, including those of the building/layout plans, developing internal and
peripheral areas and other infrastructure facilities, payment of development,
external development and other charges and complying with all other requirements
as prescribed under applicable rules/bye- laws/regulations of the State
Government/ Municipal/Local Body concerned.
(G) The State Government/ Municipal/ Local Body concerned, which approves the
building / development plans, will monitor compliance of the above conditions by
the developer.
Note:
(i) It is clarified that FDI is not permitted in an entity which is engaged or
proposes to engage in real estate business, construction of farm houses and
trading in transferable development rights (TDRs).
"Real estate business" will have the same meaning as provided in
FEMA
Notification No. 1/2000-RB dated May 03, 2000 read with RBI Master Circular i.e.
dealing in land and immovable property with a view to earning profit or earning
income there from and does not include development of townships, construction of
residential/ commercial premises, roads or bridges, educational institutions,
recreational facilities, city and regional level infrastructure, townships.
(ii) The conditions at (A) to (C) above, will not apply to Hotels & Tourist
resorts; Hospitals; Special Economic Zones (SEZs); Educational Institutions, Old
Age Homes and Investment by NRls.
(iii) The conditions at (A) and (B) above, will also not apply to investee/joint
venture companies which commit at least 30 percent of the total project cost for
low cost affordable housing.
(iv) An Indian company, which is the recipient of FDI, shall procure a
certificate from an architect empanelled by any Authority, authorized to
sanction building plan to the effect that the minimum floor area requirement has
been fulfilled.
(v) 'Floor area' will be defined as per the local laws/regulations of the
respective State governments/Union territories.
(vi) Completion of the project will be determined as per the local bye-laws/
rules and other regulations of State Governments.
(vii) Project using at least 40% of the FAR/FSI for dwelling unit of floor area
of not more than 140 square meter will be considered as Affordable Housing
Project for the purpose of FDI policy in Construction Development Sector. Out of
the total FAR/ FSI reserved for Affordable Housing, at least one-fourth should
be for houses of floor area of not more than 60 square meter.
(viii) It is clarified that 100% FDI under automatic route is permitted in
completed projects for operation and management of townships, malls/ shopping
complexes and business centres. |
Yours faithfully,
(B.P. Kanungo)
PPrincipal Chief General Manager
Foot Note:-
(i) @ It is clarified that no person will be adversely affected as a result
of the retrospective effect being given to these Regulations.
(ii) The Principal Regulations were published in the Official Gazette vide
G.S.R. No.406 (E) dated May 8, 2000 in Part II, Section 3, sub-Section (i) and
subsequently amended as under:-
G.S.R.No. 158(E) dated 02.03.2001
G.S.R.No. 175(E) dated 13.03.2001
G.S.R.No. 182(E) dated 14.03.2001
G.S.R.No. 4(E) dated 02.01.2002
G.S.R.No. 574(E) dated 19.08.2002
G.S.R.No. 223(E) dated 18.03.2003
G.S.R.No. 225(E) dated 18.03.2003
G.S.R.No. 558(E) dated 22.07.2003
G.S.R.No. 835(E) dated 23.10.2003
G.S.R.No. 899(E) dated 22.11.2003
G.S.R.No. 12(E) dated 07.01.2004
G.S.R.No. 278(E) dated 23.04.2004
G.S.R.No. 454(E) dated 16.07.2004
G.S.R.No. 625(E) dated 21.09.2004
G.S.R.No. 799(E) dated 08.12.2004
G.S.R.No. 201(E) dated 01.04.2005
G.S.R.No. 202(E) dated 01.04.2005
G.S.R.No. 504(E) dated 25.07.2005
G.S.R.No. 505(E) dated 25.07.2005
G.S.R.No. 513(E) dated 29.07.2005
G.S.R.No. 738(E) dated 22.12.2005
G.S.R.No. 29(E) dated 19.01.2006
G.S.R.No. 413(E) dated 11.07.2006
G.S.R.No. 712(E) dated 14.11.2007
G.S.R.No. 713(E) dated 14.11.2007
G.S.R.No. 737(E) dated 29.11.2007
G.S.R.No. 575(E) dated 05.08.2008
G.S.R.No. 896(E) dated 30.12.2008
G.S.R.No. 851(E) dated 01.12.2009
G.S.R.No. 341 (E) dated 21.04.2010
G.S.R.No. 821 (E) dated 10.11.2012
G.S.R.No. 606(E) dated 03.08.2012
G.S.R.No. 795(E) dated 30.10.2012
G.S.R.No. 796(E) dated 30.10.2012
G.S.R. No. 797(E) dated 30.10.2012
G.S.R.No. 945 (E) dated 31.12.2012
G.S.R. No.946(E) dated 31.12.2012
G.S.R. No.38(E) dated 22.01.2013
G.S.R.No.515(E) dated 30.07.2013
G.S.R.No.532(E) dated 05.08.2013
G.S.R. No.341(E) dated 28.05.2013
G.S.R.No.344(E) dated 29.05.2013
G.S.R. No.195(E) dated 01.04.2013
G.S.R.No.393(E) dated 21.06.2013
G.S.R.No.591(E) dated 04.09.2013
G.S.R.No.596(E) dated 06.09.2013
G.S.R.No.597(E) dated 06.09.2013
G.S.R.No.681(E) dated 11.10.2013
G.S.R.No.682(E) dated 11.10.2013
G.S.R. No.818(E) dated 31.12.2013
G.S.R. No.805(E) dated 30.12.2013
G.S.R.No.683(E) dated 11.10.2013
G.S.R.No.189(E) dated 19.03.2014
G.S.R.No.190(E) dated 19.03.2014
G.S.R.No.270(E) dated 07.04.2014
G.S.R.No. 361 (E) dated 27.05.2014
G.S.R.No.370(E) dated 30.05.2014
G.S.R.No.371(E) dated 30.05.2014
G.S.R.No. 435 (E) dated 08.07.2014
G.S.R.No. 400 (E) dated 12.06.2014
G.S.R.No. 436 (E) dated 08.07.2014
G.S.R.No. 487 (E) dated 11.07.2014
G.S.R.No. 632 (E) dated 02.09.2014
G.S.R.No. 798 (E) dated 13.11.2014
G.S.R.No. 799 (E) dated 13.11.2014
G.S.R.No. 800 (E) dated 13.11.2014
G.S.R.No. 829 (E) dated 21.11.2014
Published in the Official Gazette of Government of India – Extraordinary –
Part-II, Section 3, Sub-Section (i) dated 22.12.2014- G.S.R.No.906(E)
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