30 Aug 2017
INDIA: Official Consolidated Guidance Released to Further Clarify Rules of Liberalised FDI Regime
In a bid to further clarify the rules of India’s liberalised foreign direct investment (FDI) regime, the government has released its Consolidated FDI Policy. The document brings together all relevant official pronouncements related to FDI that have been in force as on 27 August 2017. To be updated annually, the consolidated rules will serve as the official guidance for foreign investors on India’s regulatory framework for FDI.
While the document consolidates FDI rules issued over the past twelve months into a single document, it has also for the first time outlined liberalised norms related to start-ups and venture capital (VC) funds. Most significantly, start-ups will now be permitted to raise 100% funding from foreign VC investors by issuing equity, debt instruments and convertible notes. The full text of the FDI policy document can be accessed on the official website of the Department of Industrial Policy and Promotion here.