Press Note 1 of 2009 series

Deals with FDI in Print Media

Sectors Ownership Entry Route
Print Media 100% Automatic
FDI by NRIs/PIO/FIIs in Print Media 26% FIPB

Publication of Indian edition of Foreign Magazines

 Press Note 2 of 2009 series

Provides guidelines for calculation of total foreign

Investment
i.e. Direct Investment + Indirect Investment

Direct Investment: - Investment by any Non

Resident entity into Indian company.

Indirect Investment: - Investment by Resident

Indian and/or Non Resident Indian in Indian
company
 Condt……

Illustration: -
Investing Indian company – A
Indian company – B

Case I: -
Company A having FDI in it less than 50% if invest in
company B say 26% then Company B would not be
said to have FDI in it.
 Condt…..
Case II: -
Company A having FDI in it more than 50% and invest in
company B say 26% then company B would be said to
have FDI in it upto 26%.
Case III: -
Company A having FDI in it say 75% and invest in company
B say 80% then company B would be said to have FDI in
it upto 80%
Case IV: -
Company A having FDI upto 75% and invest in Company B
say 100% then Company B would be said to have FDI in
it upto 75%.
Calculation of Indirect Foreign Investment: -

FIIs + ADRs + GDRs + FCCB + Convertible

preference shares + Convertible currency
Debentures

Above is not applicable in case of Insurance

companies, Banking, commodity exchange,
Stock exchanges and sectors under Automatic
route
 Press Note 3 of 2009 series
Guidelines for transfer of ownership or control of Indian
companies in sectors with caps from resident Indian
citizens to non-resident entities

 Approval of FIPB is required for transfer of ownership /control

of Indian company or company controlled and owned by resident
Indian citizen only in sectors with caps

 Approval of FIPB is required when non resident entities takes

over the share of existing Indian company through mergers,
amalgamations and takeovers are controlled / owned by resident
Indian Citizen
 Press Note 4 of 2009 series
Clarificatory guidelines on downstream investment by
Indian Companies
Guidelines with regard to following: -

only operating companies

operating-cum-investing companies

only investing companies.

Such company is to notify SIA, DIPP and FIPB of its downstream

investment within 30 days of such investment even if equity
shares/CCPS/CCD have not been allotted .
 Infrastructure
Sector Ownership Entry Route

Power & Electricity 100% Automatic

Telecom
Basic, cellular &value added 74%
services
ISP with gateways 74% FIPB beyond 49%
ISP without gateways 74% FIPB beyond 49%
Email, Voice mail 100% FIPB beyond 49%
Radio Paging 74% FIPB beyond 49%
End to End Bandwidth 74% FIPB beyond 49%
Infrastructure Providers 100% Automatic
Providing Dark Fiber
Telecom Manufacturing 100% Automatic
Sectors Ownership Entry Route
Roads 100% Automatic
Ports 100% Automatic

Civil Aviation
Airport 100% FIPB beyond 74%
Domestic Airlines 49% Automatic
Airports 100% FIPB beyond 74%
Maintenance Repair Organization 100% Automatic
Technical training institute & 100% Automatic
helicopter/seaplane services

Petroleum & Natural Gas

Petroleum Refining 100% Automatic

Petroleum Product pipelines 100% Automatic

Petroleum product marketing 100% Automatic

Petroleum refining PSUs 26% FIPB

Others

Sectors Ownership Entry Route

Mass Rapid Transport System 100% Automatic

EOU/SEZ/Industrial Park construction 100% Automatic

Satellite establishment and operation 74% FIPB

Publishing scientific magazines 100% FIPB

Courier Services 100% FIPB