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　　APPLICABILITY

　　2.1 These guidelines shall _apply to direct investment by Indian parties in joint ventures (JVs) and wholly owned subsidiaries (WOSs) abroad (hereinafter referred to as "foreign concerns"). They apply to direct investment by Indian parties in newly promoted foreign concerns, to make initial or additional direct investment by Indian parties in existing foreign concerns and to investments for acquisitions of overseas business.

　　2.2 The foreign concern in which the direct investment is proposed to be made may be engaged in industrial, commercial, trading or service activity including hotel or tourism industry. This includes financial services such as insurance, mutual funds, etc.

　　2.3 These guidelines do not apply to portfolio investment by Indian parties in foreign concerns. The guidelines do not also apply to direct investment in foreign concerns engaged in the banking sector. Such cases would be considered on merits by Reserve Bank of India / Department of Economic Affairs, Ministry of Finance.

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　　Guidelines for Indian Direct Investment in Joint Ventures and Wholly Owned Subsidiaries Abroad

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