DMPQ: Discuss the features of consolidated FDI Policy for 2017.

Commerce ministry has released a consolidated policy for FDI  in 2017. This time they have included start ups in the FDI policy also. The major features of FDI are as follows:

  • With the dilution of FIPB, the power for clearance has been delegated to the administrative departments. The proposal relating to the banking, mining, defence, broadcasting, civil aviation, telecoms, pharmaceuticals etc. will have to be approved by administrative ministries.
  • The DIPP will be the authority to clear proposal relating to areas including retail.

Startups can issue equity or equity linked instruments or debt instruments to FVCI against receipts of foreign remittance. Person residing outside India will be permitted to purchase convertible notes issued by an Indian start-up company.

 

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