The Cabinet Committee on Economic Affairs (CCEA) today approved the proposal to amend the policy on allowing foreign direct investment (FDI) in limited liability partnership (LLP) firms.
FDI in LLPs will be implemented in a calibrated manner, beginning with the 'open' sectors where monitoring is not required, subject to certain conditions, an official release said.
LLPs with FDI will be allowed, through the government approval route in sectors/activities where 100 per cent FDI is allowed through the automatic route and there are no FDI-linked performance related conditions.
LLPs with FDI will also be not allowed to operate in agricultural/plantation activity, print media or real estate business.
LLPs with FDI will not also be eligible to make any downstream investments.
An Indian company having FDI, will be permitted to make downstream investment in LLPs only if the company as well as the LLP are operating in sectors where 100 per cent FDI is allowed through the automatic route and there are no FDI-linked performance related conditions.