Note-I
- Document type
- Form
- Dated
- Category
- Forms
Foreign Investment
- FOREIGN INVESTMENT
- Approval will be given by the Reserve Bank of India for direct foreign investment upto 50/51/74 per cent foreign equity in high priority industries (Annex III, Annex III Part `A, Part `B and Part `C). There shall be no bottlenecks of any kind in this process.
- The import of components, raw materials and intermediate goods, and payment of know-how fees and royalties will be governed by the general policy applicable to other domestic units.
- Other foreign equity proposals, including proposals involving 50/51/74 per cent foreign equity which do not meet the criteria under (i) above, will continue to need prior clearance. Foreign equity proposals need not necessarily be accompanied by foreign technology agreements.
- To provide access to international markets, majority foreign equity holding upto 51 per cent equity will be allowed for trading companies primarily engaged in export activities. While the thrust would be on export activities, such trading houses shall be at par with domestic trading and export house in accordance with the Import-Export Policy.
- For increase/induction of foreign equity in the existing company, the request should be supported by a Board Resolution of the Indian Company