Reserve Of Bank India
A. P. (DIR Series) Circular No. 32
September 21, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Foreign investment in Single–Brand Product Retail Trading/ Multi-Brand Retail
Trading / Civil Aviation Sector / Broadcasting Sector / Power Exchanges -
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.
- The extant Foreign Direct Investment policy has since been reviewed and it
has now been decided as follows:
- FDI up to 100 per cent is now permitted in Single–Brand Product Retail
Trading by only one non-resident entity, whether owner of the brand or
otherwise, under the Government route subject to the terms and conditions as
stipulated in Press Note No. 4 (2012 Series) dated September 20, 2012 issued by
the Department of Industrial Policy & Promotion, Ministry of Commerce &
Industry, Government of India.
- FDI up to 51 per cent is now permitted in Multi-Brand Retail Trading under
the Government route, subject to the terms and conditions as stipulated in Press
Note No. 5 (2012 Series) dated September 20, 2012 issued by the Department of
Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of
India.
- Foreign airlines are permitted FDI up to 49% in the capital of Indian
companies in Civil Aviation Sector, operating scheduled and non-scheduled air
transport, under the automatic/Government route subject to the terms and
conditions as stipulated in Press Note No. 6 (2012 Series) dated September 20,
2012 issued by the Department of Industrial Policy & Promotion, Ministry of
Commerce & Industry, Government of India.
- FDI limits in companies engaged in providing Broadcasting Carriage Services
under the automatic/Government route have been reviewed and the same would be
subject to the terms and conditions as stipulated in Press Note No. 7 (2012
Series) dated September 20, 2012 issued by the Department of Industrial Policy &
Promotion, Ministry of Commerce & Industry, Government of India.
- FDI up to 49% is permitted in Power Exchanges registered under the Central
Electricity Regulatory Commission (Power Market) Regulations, 2010, under the
Government route, subject to the terms and conditions as stipulated in Press
Note No. 8 (2012 Series) dated September 20, 2012 issued by the Department of
Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of
India.
- A copy each of Press Note Nos. 4,5,6,7 and 8 (2012 Series) dated September
20, 2012 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 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,
(Rudra Narayan Kar)
Chief General Manager
RBI/2012-13/217