Annexure A & B of Schedule 1 of RBI Foreign Exchange Management
(Transfer or Issue of Security by person resident outside India)
Regulation, 2000

Annexure A

1. Banking
2. NBFC’s activities in Financial Services Sector
3. Civil Aviation
4. Petroleum including exploration/refinery/marketing
5. Housing & Real Estate Development sector for foreign investment, other than NRIs/OCBs.
6. Venture Capital Fund & Venture Capital Company
7. Investing companies in Infrastructure & Service Sector
8. Atomic Energy & related projects
9. Defence and strategic industries
10. Agriculture (including plantation)
11. Print Media
12. Broadcasting
13. Postal services

Annexure B

1. Telecommunications

   1. In basic, Cellular Mobile, paging and Value Added ervices, and Global Mobile Personal Communications by Satellite, FDI is limited to 49% subject to grant of licence from Department of Telecommunications and adherence by the companies (who are investing and the companies in which investment is being made) to the licence conditions for foreign equity cap and lock in period for transfer and addition of equity and other licence provisions.

   2. No equity cap is applicable to manufacturing activities

2. Housing and Real Estate
   
   No foreign investment is permitted in this sector. Estate NRIs/OCBs are allowed to invest. The scheme specific to NRIs and OCBs covers the following:

   1. Development of serviced plots and construction of residential premises
   2. Investment in real estate covering construction of residential and commercial premises including business centres and offices
   3. Development of townships
   4. City and regional level urban infrastructure facilities, including both roads and bridges.
   5. Investment in manufacture of building materials
   6. Investment in participatory ventures in (a) to (e) above

   7. Investment in housing finance institutions

3. Coal and Lignite Upto 49% in PSU and
   
   Upto 50% in other cases as per the following terms and conditions prescribed by Govt.:

   1. Private Indian companies setting up or operating power projects as well as coal or lignite mines for captive consumption;

   2. For setting up coal processing plants subject to the condition that the company shall not do coal mining and shall not sell washed coal or sized coal from its coal processing plants in the open market and shall supply the washed or sized coal to those parties who are supplying raw coal to coal processing plants for washing or sizing

   3. For exploration or mining of coal or lignite for captive consumption.

4. Drugs and Pharmaceuticals Upto 74% in case of bulk drugs, their intermediaries and
   formulations (except those produced by the use of recombinant DNA technology)

5. Hotel and Tourism Upto 51%
   
   The term hotels include restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry includes travel agencies, tour operating agencies and tourist transport operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment amusement, sports, and health units for tourists and Convention/Seminar units and organisations.

6. Mining Upto 74% for exploration and mining of diamonds and precious stones.
   
   Upto 100% for exploration and mining of gold and silver and minerals other than diamonds and precious stones, metallurgy and processing.
   

7. Advertising and Films Upto 74% in advertising sector
   
   Upto 100% in film industry (i.e. film financing, production, distribution, exhibition, marketing and associated activities relating to film industry) subject to the following:

   1. Companies with an established track record in films, TV, music, finance and insurance

   2. The company should have a minimum paid up capital of US $ 10 million if it is the single largest equity shareholder and atleast US $ 5 million in other cases

   3. Minimum level of foreign equity investment would be US $ 2.5 million for the single largest equity shareholder and US $ 1 million in other cases

   4. Debt equity ratio of not more than 1:1 i.e. domestic borrowings shall not exceed equity

   5. Provisions of dividend balancing would apply.
      

Explanation:

1. a person (not being a citizen of Pakistan or Bangladesh or Sri Lanka) shall be deemed to be of "Indian Origin", if

• he, at any time, held an Indian passport; or

• he or either of his parents or his grandparents was citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955)

2. "Overseas Corporate Body (OCB)" mean any overseas company, partnership firm, society and other corporate body predominantly owned directly or indirectly to the extent of at least 60% by non-residents of Indian nationality or origin (NRIs).

Note:- Annexures A and B need to be amended by RBI in view of revised Sector Specific Guidelines as issued under Government Press Note No.4 (2001 series) dated 21.5.2001. Refer Sector Specific Guidelines as updated on our site.

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