Government of India |
PRESS RELEASE Subject: Review of existing sectoral policy and sectoral equity cap for Foreign Direct Investment (FDI) and investment by Non Resident Indians (NRI) / Overseas Corporate Bodies (OCB)
Attention is invited to Press Note No. 7 of 2000 series issued on 14.7.2000 which inter alia, provides for Foreign Direct Investment upto 100% for e-commerce activities subject to the condition that companies that are listed in other parts of the world would divest 26% of their equity in favour of the Indian public within 5 years. Further, these companies would engage only in business to business (B2B) e-commerce and not in retail trading. It is clarified that disinvestment of 26% of equity in favour of the Indian public in five years would be applicable in cases where the foreign equity contribution is more than 74% and upto 100%. In such cases, the foreign investors shall be required to divest their equity, to the extent it exceeds 74%, to the Indian public. It is further clarified that FDI upto 100% in e-commerce activities as per Press Note No. 7 of 2000 series, shall remain under the automatic route, and prior approval of FIPB/Government is not required.
(M.S. SRINIVASAN)
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