File Content -
Investment Limit for Cases involving
6 of 2015 Series
Investment by NRIs, PIOs and OCIs
7 of 2015 Series
Introduction of Composite Caps
8 of 2015 Series
Partly Paid Shares and Warrants
9 of 2015 Series
FDI in White Label ATM Operations
11 of 2015 Series
Review of FDI Policy on Various Sectors
12 of 2015 Series
Review of FDI Policy on Insurance Sector
1 of 2016 Series
Review of FDI Policy on Pension Sector
2 of 2016 Series
Guidelines for Foreign Direct Investment (FDI)
3 of 2016 Series
Review of FDI Policy on Asset Reconstruction
4 of 2016 Series
10June2016 17:44 IST
Press Information Bureau
Government of India
Ministry of Commerce & Industry
Consolidated FDI Policy Circular of 2016
Consolidated FDI Policy Circular is a policy framework on Foreign Direct Investment, which consolidates
all Press Notes/Press Releases/Clarifications/ Circulars issued by DIPP, which are in force. The first Circular
was issued in March, 2010, which has been updated periodically. The last such Circular was released on
12.05.2015. ‘Consolidated FDI Policy Circular of 2016’ is the ninth edition of the series.
Consolidated FDI Policy Circular of 2016 incorporates all FDI policy amendments carried out since the
release of last FDI Circular i.e. since May 12, 2015. FDI Policy Circular, 2016 has been made simpler and
investor friendly; and will serve as a ready reference for foreign investors on various provisions of the FDI policy
The significant changes introduced in this edition of the Circular are:
The clauses corresponding to the following Press Notes have been incorporated in the Consolidated FDI
Policy Circular of 2016:
RBI vide Notification No. 355/2015RB dated November 16, 2015 has enabled/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. The change has been
incorporated at para 1.3 of FDI Circular, 2016.
Definition of “Employees’ Stock Option” has been incorporated at para 2.1.9 of FDI Circular, 2016.
Definition of “Investment Vehicle” has been incorporated at para 2.1.23 of FDI Circular, 2016.
Definition of “Sweat Equity Shares” has been incorporated at para 2.1.43 of FDI Circular, 2016.
Definition of “Unit” has been incorporated at para 2.1.45 of FDI Circular, 2016.
Clause relating to Issue of Shares Under Employees Stock Option Scheme has been amended to include
issuance of Sweat Equity Shares also. (Para 5 of Annexure 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 126.96.36.199).
Non Resident Indians have been made eligible for subscription to National Pension System governed and
administered by Pension Fund Regulatory and Development Authority (Para 3.1.8).