FDI in real sector

Hi priya,

Your querry is not much clear. Are you asking whether the FDI is permitted in Real Estate? If it is so, then FDI is not permissible in real estate. You can refer Schedule 1. of  FEMA (Transfer and Issue of Security by a person resident outside India) Regulations, 2000.

Regards

Deepika Singh

Indian parties are prohibited from making investment in foreign entity engaged in real estate (as defined in Regulation 2 (p) of the Notification) or banking business, witout the prior aproval of Reserve Bank.(Refer RBI Maste Circular no. 1- 2009-10)

"Real estate business" means buying and selling of real estate or trading in Transferable Development Rights (TDRs) but does not include development of townships, construction of residential / commercial premises, roads or bridges;

Dear Ms. Priya

Find enclosed herwith Master Circular  on FDI issued by RBI on July 2009.

Please check point no.3 of page 2 of this circular.

Regards