The government declared fresh FDI (Foreign Direct Investment) norms for FIIs (Foreign Institutional Investors). The DIPP (Department of Industrial Policy and Promotion) consolidated FDI policy and the fresh norms come into effect. Under the new norms:

• FIIs can now invest up to 23% in commodity exchanges without seeking prior approval of the government.
• Yet, FDI will continue to need the approval of the FIPB (Foreign Investment Promotion Board).

At present,

• Foreign investment, within a composite FDI and FII cap of 49%, under the government approval route is permitted in commodity exchanges.
• Within this overall limit of 49%, investment by registered FIIs is limited to 23% and investment under the FDI scheme is limited to 26%.

Now,

• DIPP has now decided to liberalize the policy and to mandate the need of government approval only for FDI component of the investment.

This change adjusts with the policy for foreign investment in commodity exchanges, with that of other infrastructure companies in the securities markets, viz.  stock exchanges, depositories and clearing corporations. It was also decided by the DIPP that the consolidated FDI circular will be declared each year instead of 6-monthly basis. Thus, next policy would be declared on March 29, 2013.