Government issues simpler, investor friendly compendium on FDI

New Delhi, June 10 : The government has released an updated compendium on foreign direct investment (FDI) policy by incorporating all changes and eliminating unnecessary explanations, an official statement said on Friday.

Announcing publication of the ninth edition of the Consolidated FDI Policy Circular of 2016, the Commerce Ministry statement said: “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 compendium includes provisions for issue of “sweat equity” to non-resident employees and directors and also defines the terms “private security”, “private security agencies” and “armoured car service”.

The Department of Industrial Policy and Promotion (DIPP) earlier said the 109-page policy has clarified on private security agencies by borrowing the definition of a few terms from the Private Security Agencies (Regulation) (PSAR) Act, 2005.

Further, the consolidated FDI policy has retained the previous UPA government’s decision to allow foreign retailers to open multi-brand stores with 51 per cent ownership.

The compendium also includes provisions for enabling investments in real estate and infrastructure investments trusts and guidelines for FDI on e-commerce.

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