Department of Economic Affairs (DEA), Ministry of Finance (MoF) amends NDI Rules for foreign direct investment (FDI) in telecom sector

31 Dec 2021 PDF
Subject Alerts
Categories Regulatory Financial instruments
Jurisdictions India

This update summarizes the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2021 dated 12 October 2021 dealing with amendment of non-debt instrument rules by DEA in telecom sector.

  • The DEA has amended the NDI Rules notifying the increase in sectoral cap for FDI in the telecom sector under the automatic route from 49% to 100%. 
  • Prior to the amendment, FDI in the telecom sector was permitted up to 49% under the automatic route, and beyond 49% up to 100 % under government approval route. 

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