Department of Industrial Policy and Promotion (“DIPP“) has issued Press Note No. 7 (2015 Series) dated 3 June 2015 (“Press Note 7“) pursuant to which the ‘Consolidated Foreign Direct Investment Policy Circular of 2015′ dated 12 May 2015 (“FDI Policy”) relating to investments by Non-Resident Indians (“NRIs“), Overseas Citizen of India (“OCIs“) and Persons of Indian Origin (“PIOs“) has been amended.
The amendments are as follows:
- The definition of NRI has been expanded to include OCI as well as PIO cardholders within the meaning of the Citizenship Act, 1955 and Notification No. 26011/4/98 F.I, dated 19 August 2002, issued by the Central Government, respectively.
- Investments by NRIs for purposes of the FDI Policy, on a non-repatriation basis (in accordance with Schedule 4 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000), will be treated as a domestic investment at par with the investments made by residents in India.
These amendments in Press Note 7 shall take effect from 18 June 2015.