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Master Circular on Foreign Investment in India (2011-12)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2011-12/15 · issued 01 Jul 2011 · ~1 min read

Quick answerRBI consolidated all rules on foreign investment into one master circular for AD Category-I banks. It covers FDI, portfolio investments, venture capital, and partnership investments. The circular had a one-year sunset clause, expiring July 1, 2012.

What changed

RBI issued a master circular compiling all existing instructions on foreign investment in India under FEMA. It consolidated rules for FDI, portfolio investment, foreign venture capital, and investments in partnership firms. The circular included a sunset clause, making it valid only until July 1, 2012.

What it means for you

Banks must use this single reference for all foreign investment compliance, replacing earlier scattered circulars. The sunset clause means banks need to track the replacement circular after July 2012. This simplifies but also centralizes regulatory oversight for AD banks handling foreign investments.

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 and implement the consolidated FDI and portfolio investment guidelines from this master circular.
Ensure all reporting for FDI, FII, and NRI investments follows the specified formats and timelines.
Prepare for the circular's expiry on July 1, 2012, by monitoring for the updated version.
Train staff on the unified framework for foreign investment transactions and compliance.

Who it affects

All Category-I Authorised Dealer banks, Indian companies receiving foreign investment, Foreign investors (FIIs, NRIs, venture capital investors), Partnership firms and proprietary concerns with non-resident investment

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 00:52 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Status change: withdrawn 03 Aug 2026, 04:00 IST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 legal basis for this master circular?

It is issued under Section 6(3) of FEMA, 1999, read with Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended.

Does this circular cover investments in partnership firms?

Yes, Part II of the circular covers investment in partnership firms and proprietary concerns, regulated under Section 2(h) of Section 47 of FEMA read with Notification No. FEMA 24/2000-RB.

When does this master circular expire?

It has a sunset clause and stands withdrawn on July 1, 2012, to be replaced by an updated version.

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

RBI/2011-12/15 
 Master Circular No. 15/2011-12 
 July 1, 2011 
 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, 2012 and be replaced by an updated Master Circular on the subject.
 Yours faithfully,
 (Meena Hemchandra) 
 Chief General Manager-in-Charge 
 INDEX

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/15 · issued 01 Jul 2011. 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=6506&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.