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DoT issues change in FDI Norms of IFMC service providers
The Department of Telecommunications (DoT) on February 23, 2022 issued changes in FDI Norms for all In-Flight and Maritime Connectivity(IFMC) service providers in the telecom sector.
DoT stated that the Department of Promotion of Industry and Internal Trade (DPIIT) on October 06, 2021 allowed 100% Foreign Direct Investment (FDI) in telecom sector under automatic route subject to the restrictions and mentioned guidelines regarding investments from countries sharing land-border with India. Accordingly, all In Flight and Maritime Connectivity (IFMC) Service Providers are directed to comply with the following FDI Norms.
FDI upto 100% under automatic route is allowed subject to following
(i) An entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.
(ii) In the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/ purview of the clause no. (i) above, such subsequent change in beneficial ownership will also require Government approval.
IFMC authorizations for companies reached 17 by the end of December 2021 according to data published by DoT.
Two companies have been issued In Flight and Maritime Connectivity (IFMC) authorization by DoT — Global Tech Integrated Systems Private Limited and IndJets India Private Limited.
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