Posted: 10/04/2013
The Department of Industrial Policy and Promotion in India issued Circular 1 of 2013 on 5 April 2013, updating and consolidating the policy changes, instructions and clarifications relating to foreign investment in India. The circular has made one key change to the existing foreign direct investment policy. In cases of issue of shares in lieu of import of capital goods/machinery/equipment (excluding second hand machinery), the requirement for independent valuation of such goods/machinery by a third party from the country of import has been removed.
Investment by a non-resident in an Indian company by subscription to the memorandum of association may be made at face value subject to eligibility under the FDI scheme.
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