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Master Circular on Foreign Investment in India (2010)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2010-11/13 · issued 01 Jul 2010 · ~2 min read

Quick answerRBI consolidated all foreign investment rules for AD Category-I banks into a single Master Circular, covering FEMA provisions for equity and partnership investments. This circular had a one-year sunset clause, expiring July 1, 2011.

What changed

RBI issued Master Circular No.13/2010-11 on July 1, 2010, compiling all existing instructions on foreign investment in India under FEMA. It covered both equity investments and investments in partnership firms or proprietary concerns. The circular included a sunset clause, meaning it would automatically expire on July 1, 2011, and be replaced by an updated version.

What it means for you

For AD Category-I banks, this circular served as a single reference document for foreign investment compliance, reducing the need to track multiple underlying notifications. Banks had to ensure their processes aligned with the consolidated rules, and they needed to prepare for the annual update cycle. The sunset clause signaled RBI's intent to regularly refresh the framework.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Review your bank's foreign investment processing procedures against this Master Circular to ensure compliance with all consolidated FEMA provisions.
Prepare for the circular's expiry on July 1, 2011, by monitoring RBI for the updated version and planning internal training updates.
Ensure your AD Category-I authorization covers all investment types mentioned, including partnership firms and proprietary concerns.
Maintain records of underlying notifications referenced in the circular's appendix for audit readiness.

Who it affects

All Category-I Authorised Dealer banks, Banks handling foreign investment transactions in India, Compliance teams dealing with FEMA regulations

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 05:35 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the sunset clause in this Master Circular?

The circular included a sunset clause stating it would stand withdrawn on July 1, 2011, and be replaced by an updated Master Circular on the same subject.

Does this circular cover investments in partnership firms?

Yes, the circular covers investment in capital of partnership firms or proprietary concerns, regulated under FEMA Notification No. FEMA 24/2000-RB.

Which FEMA section governs foreign investment as per this circular?

Foreign investment is governed by sub-section (3) of Section 6 of the Foreign Exchange Management Act, 1999, read with Notification No. FEMA 20/2000-RB.

📜 Read the original circular — full text as issued by RBI

RBI/2010-11/13 
 Master Circular No.13/2010-11 
 July 01, 2010 
 To,
 All Category - I Authorised Dealer banks
 Madam / Sir,
 Master Circular on Foreign Investment in India 
 Foreign investment in India is governed by sub-section (3) of Section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 20/2000-RB dated May 3, 2000 , as amended from time to time. The regulatory framework and instructions issued by the Reserve Bank have been compiled in this Master Circular . The list of underlying circulars/notifications is furnished in Appendix. In addition to the above, this Master Circular also covers the area  of  Investment in capital of partnership firms or proprietary concern which is regulated in terms of Section 2(h) of Section 47 of Foreign Exchange Management Act, 1999, read with Notification No. FEMA 24/2000-RB dated May 3, 2000 .
 2. This Master Circular is being issued with a sunset clause of one year.  This circular will stand withdrawn on July 1, 2011 and be replaced by an updated Master Circular on the subject.
 Yours faithfully,
 (Salim Gangadharan) 
 Chief General Manager-in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/13 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5788&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.