Tuesday, October 6, 2015
Investment in companies engaged in tobacco related activities
Foreign Direct Investment is prohibited in manufacturing of cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
The prohibition applies only to manufacturing of the products mentioned and FDI in other activities including wholesale cash and carry, retail trading etc. shall be governed by the sectoral restrictions laid down in the FDI policy and FEMA Regulations.
Based on RBI Circular dt 3/07/15. Please visit www.rbi.org.in for any further clarification if required…..Poppy