The Department of Industrial Policy and Promotion (Ministry of Commerce & Industry), Government of India has issued Press Note 8 of 2015 (‘the Press note’), notifying amendments in the Consolidated FDI policy circular dated 12 May 2015 (‘FDI policy’). The Press Note introduces composite caps in Foreign Direct Investment (FDI) Policy for simplification of the said policy and to attract foreign investments.
The concept of composite cap brings in a great relief to foreign investors as the separate limits for foreign portfolio investment and foreign direct investment has been done away with, thereby introducing complete fungibility across almost all the sectors. This is another liberalisation measure brought in by the Government in favour of the foreign investors and specially the foreign portfolio investors to help them bring in more investments in Indian listed companies.
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