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FDI in real sector

Priya Sharma (Company Secretary & Student.MBA) (998 Points)

29 July 2009

Yes I am speaking about FDI in Real estate Sector.But in Press Note 2 of 2005 FDI in Constructions, development,etc is 100% allowed.

In Master Data, too it is same..

Regds

Priya

Student

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4 Replies

Deepika singh (CS & MBA) (46 Points)
Replied 29 July 2009

Hi priya,

Your querry is not much clear. Are you asking whether the FDI is permitted in Real Estate? If it is so, then FDI is not permissible in real estate. You can refer Schedule 1. of FEMA (Transfer and Issue of Security by a person resident outside India) Regulations, 2000.

Regards

Deepika Singh

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 29 July 2009

Indian parties are prohibited from making investment in foreign entity engaged in real estate (as defined in Regulation 2 (p) of the Notification) or banking business, witout the prior aproval of Reserve Bank.(Refer RBI Maste Circular no. 1- 2009-10)

"Real estate business" means buying and selling of real estate or trading in Transferable Development Rights (TDRs) but does not include development of townships, construction of residential / commercial premises, roads or bridges;