India – Amendments To The Foreign Exchange Management (Non-Debt Instrument) Rules, 2019.

Vide the notification dated 5 October 2021, the Ministry of Finance has amended schedule I of the NDI Rules, increasing the permitted foreign investment under the automatic route from 49% (forty nine percent) to 100% (one hundred percent), for public sector units operating in the petroleum and natural gas sector that have received an 'in-principle' approval for strategic disinvestment from the central government. This notification has implemented the Press Note No. 3 of 2021, released by the Department for Promotion of Industry and Internal Trade on 29 July 2021.
 

Vide the notification dated 12 October 2021, 100% (one hundred percent) foreign direct investment has been permitted in the telecom sector under the automatic route. Prior to this, the foreign investment in the telecom sector was permitted up to 100% (one hundred percent), with government approval being required beyond 49% (forty nine percent). This notification has brought into effect, the changes proposed to be made to the telecom sector vide Press Note 4 of 2021, dated 6 October 2021 of the Department for Promotion of Industry and Internal Trade.
 

Please click here and here to read the amendment notifications.
 

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