ANNOUNCED AS TEMPORARYNo
FDI: Entry and ownership rule
On 30 July 2015, the Indian Government through Press Note No. 8 (2015 series) (Department of Industrial Policy and Promotion) introduced a composite cap on foreign investments in Indian companies.
Earlier, the overall cap for investments was divided between Foreign Direct Investments (FDI) and other types, i.e. Foreign Portfolio Investments, Foreign Institutional Investors, Qualified Foreign Investors, etc. With the amendment, the cap will apply for the total foreign investment, regardless of the type of such foreign investment as long as such investment is in company equity and not company debt.
The above measure will not apply for foreign investment rules in the railways and the defense sector.
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