The Consolidated FDI Policy (Circular 1 of 2014) was released by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India on 17th April 2014 , setting out the consolidated foreign direct investment (FDI) policy of India which comes into force with immediate effect. The New Policy supersedes the Consolidated FDI Policy (Circular 1 of 2013)issued by the DIPP on 6th April 2013.
The New Policy primarily serves to (i) consolidate various press releases issued by the DIPP in the intervening period between the Old Policy and the New Policy; and (ii) provide clarifications to align the New Policy with existing laws and regulations.
Unfortunately, there are some gaps in the consolidation process such as non-inclusion of FDI norms in Limited Liability Partnerships (notified on 13th March 2014), continued references to the Companies Act, 1956 throughout the New Policy despite substantial provisions of the Companies Act, 2013 coming into effect from 1st April 2014 and continued reference to ˜venture capital funds™ instead of ˜Alternate Investment Funds™.
