RBI/2011-12/296
A. P. (DIR Series) Circular No.56
December 09, 2011
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Foreign Investment in Pharmaceuticals Sector -
Amendment to the Foreign Direct Investment Scheme
Attention of Authorised Dealers Category – I (AD Category - I) banks is invited
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 of the Notification ibid, Foreign Direct Investment (FDI) up to 100 per cent
is permitted in pharmaceuticals sector under the automatic route of the FDI
Scheme.
- The extant FDI policy for pharmaceuticals sector has since been reviewed and
it has now been decided as under:
(i) FDI, up to 100 per cent, under the automatic route, would continue to be
permitted for green field investments in the pharmaceuticals sector.
(ii) FDI, up to 100 per cent, would be permitted for brownfield investment (i.e.
investments in existing companies), in the pharmaceutical sector, under the
Government approval route.
- A copy of
Press Note 3 (2011Series) dated November 8, 2011 issued in this
regard is enclosed.
- AD Category - I banks may bring the contents of the circular to the notice of
their customers/constituents concerned.
- Necessary amendments to the Foreign Exchange Management (Transfer or Issue of
Security by a Person Resident outside India) Regulations, 2000 (Notification No.
FEMA 20/2000-RB dated May 3, 2000) are being notified separately.
- 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,
(Rashmi Fauzdar)
Chief General Manager