INDIA: DIPP Publish Revised FDI Policy 2016

Wednesday June 29 2016

The Department of Industry Policy and Promotion (DIPP) has published press note no. 5 of 24 June 2016, outlining various changes and amendments made to Consolidated Foreign Direct Investment (FDI) Policy Circular of 2016 dated 7th June, 2016 (FDI Policy).

FDI Policy is a policy framework on Foreign Direct Investment. The first Circular was issued in March, 2010, and has been updated periodically. ‘Consolidated FDI Policy Circular of 2016’ is the ninth edition of the series and it subsumes and supersedes all Press Notes / Press Releases / Clarifications / Circulars, which were in force as on June 06, 2016 and reflects the Consolidated Statement of DIPP on FDI Policy of India as on June 07, 2016, incorporating all FDI policy amendments carried out since May 12, 2015.

Significant changes introduced during this period, includes those outlined under notification no. 355/2015RB, dated November 16, 2015, which facilitated foreign investment in Real Estate Investment Trusts (REITs) registered under SEBI (REITs) Regulation, 2014, Infrastructure Investment Trust (InvITs) registered and regulated under SEBI (InvITs) Regulation 2014 and Alternative Investment Fund (AIF) registered under SEBI (AIF) Regulations, 2012.

Other changes include:

• The Issue of Shares Under Employees Stock Option Scheme has been amended to include issuance of Sweat Equity Shares also. (Para 5 of Annex 4);
• Investment Vehicle has been added as an eligible investee entity by adding new para 3.2.5;
• FDI Policy on ‘Private Security Agencies’ has been clarified by incorporating definitions of “Private Security Agency”, “Private Security” and “Armoured Car Service” (Para 5.2.13.1);

Please click the above link for more information.