Composite FDI Cap Notified

NEW DELHI: Sectors like insurance, pension, retail and pharmaceuticals will benefit from introduction of composite cap in the FDI policy which came into effect from on Thursday.

In all these sectors, foreign portfolio investors can invest up to 49 per cent under automatic route.

The government notified changes in the foreign direct investment (FDI) policy under which there will be a composite cap on overseas investment in various sectors, except in banking and defence segments.

The other sectors that will be benefited from this concept include scientific journals, facsimile edition of foreign news papers, tea plantation and mining & mineral separation of titanium.

The Press Note further said that portfolio investment up to 49 per cent, subject to sectoral ceiling, will not need government approval, if they do not result in transfer of ownership or control from Indian citizens to non-Indian entities.

Under new norms, all types of direct and indirect overseas investments, whether portfolio or FDI, will be subject to a composite FDI cap for that particular sector, the Press Note issued by the Department of Industrial Policy and Promotion said.