India's FDI Policy Architecture
FEMA + NDI Rules + Press Notes
India's FDI governance is multi-layered. FEMA 1999 is the parent statute. The Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules) are statutory rules made by the central government under FEMA Sections 46 and 47, governing equity investments. Press Notes issued by DPIIT are executive policy instruments — technically sub-statutory but operationally binding through their reflection in the NDI Rules. When the NDI Rules are amended, the press note's content acquires FEMA-enforced legal status with RBI-backed compliance.
- FEMA 1999: Sections 6, 46, and 47 empower the central government and RBI to regulate foreign investment.
- NDI Rules 2019: replaced the earlier FEMA (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017.
- Press Notes: issued by DPIIT; not statutory instruments, but reflected in NDI Rules.
- The DEA notification in the Official Gazette (Extraordinary) is the definitive legal instrument.
● Tracked since March 11, 2026 · last seen May 02, 2026 · updates as the daily brief publishes
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