FEM (TRANSFER OR ISSUE OF SECURITY BY A PERSON RESIDENT OUTSIDE INDIA) (SECOND AMENDMENT) REGULATIONS, 2016 – AMENDMENT IN REGULATIONS 2, 14, SCHEDULE 1, SCHEDULE 9 AND SUBSTITUTION OF SCHEDULE 11 – CORRIGENDUM TO NOTIFICATION [NO.FEMA.362/2016-RB]/GSR 166(E), DATED 15-2-2016
NOTIFICATION NO. GSR 1089(E) [F.NO.1/3/EM/2016], DATED 25-11-2016
In the Notification of Reserve Bank of India, Foreign Exchange Department No. FEMA. 362/2016-RB dated February 15, 2016 bearing G.S.R.No. 166(E) and published in the Official Gazette of Government of India – Extraordinary – Part-II, section 3, sub-section (i) (hereinafter referred as Gazette Notification)
2. In paragraph 2(C) (iv), S. Nos. 9.3 and 9.3.1 shall be substituted as under:
|9.3||Air Transport Services|
|(1)(a) Scheduled Air Transport Service/Domestic Scheduled Passenger Airline
(b) Regional Air Transport Service
|49% (100% for NRIs)||Automatic|
|(2) Non-Scheduled Air Transport Service||100%||Automatic|
|(3) Helicopter services/seaplane services requiring DGCA approval||100%||Automatic|
|(a) Air Transport Services would include Domestic Scheduled Passenger Airlines; Non-Scheduled Air Transport Services, helicopter and seaplane services.
(b) Foreign airlines are allowed to participate in the equity of companies operating Cargo airlines, helicopter and seaplane services, as per the limits and entry routes mentioned above.
(c) Foreign airlines are also allowed to invest in the capital of Indian companies, operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital. Such investment would be subject to the following conditions:
Note: (i) The FDI limits/entry routes, mentioned at paragraph 9.3(1) and 9.3(2) above, are applicable in the situation where there is no investment by foreign airlines.
(ii) The dispensation for NRIs regarding FDI up to 100% will also continue in respect of the investment regime specified at paragraph 9.3.1(c) (ii) above.
(iii) The policy mentioned at 9.3.1(c) above is not applicable to M/s Air India Limited
3. The other contents of the Gazette Notification shall remain unchanged.