CONSOLIDATED FOREIGN DIRECT INVESTMENT POLICY, CIRCULAR 2 OF 2010,

 EFFECTIVE FROM 1ST OCTOBER 2010

Department of Industrial Policy and Promotion in association with Ministry of Commerce and Industry, Government of India has all over again issued consolidated FDI policy vide circular 2 of 2010 effective from October 1st, 2010.

Circular 1 of 2010 as issued by the Department on 31st March 2010, prior to current Circular 2 of 2010, has consolidated into one document all the prior policies/ regulations on FDI which are contained in FEMA, 1999, RBI Regulations under FEMA, 1999 and Press Notes/Press Releases/Clarifications issued by DIPP and reflected the current policy framework on FDI.

The present consolidation purports and supplants all Press Notes/Press Releases/Clarifications/ Circulars issued by DIPP, which were in force as on September 30th, 2010, and reflects the FDI Policy which will come into force as on October 1st, 2010.

The Circular has been issued with the sunset clause of six months. A new Circular consolidating all amendments to the FDI Policy shall be issued on March 31st, 2011 superseding the present Circular.