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Master Circular on Foreign Investment in India (2013-14)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/15 · issued 18 Jun 2014 · ~1 min read

Quick answerRBI consolidated all foreign investment rules into one Master Circular for AD Category-I banks, covering FDI, portfolio, venture capital, and other investments. It includes a sunset clause expiring July 1, 2014, after which an updated circular will replace it.

What changed

RBI issued Master Circular No.15/2013-14 on July 1, 2013, consolidating all prior instructions on foreign investment in India under FEMA. It covers FDI, portfolio investment, foreign venture capital, and other investments, and includes a sunset clause making it valid only until July 1, 2014.

What it means for you

Banks and AD Category-I banks now have a single reference document for foreign investment rules, simplifying compliance. The sunset clause means banks must prepare for an updated circular by July 2014, ensuring they stay current with regulatory changes.

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 the Master Circular for consolidated foreign investment guidelines and ensure your bank's procedures align.
Monitor the sunset clause expiry on July 1, 2014, and prepare to adopt the upcoming updated circular.
Train staff on the key sections: FDI, Portfolio Investment Scheme, and Foreign Venture Capital Investments.
Refer to underlying circulars/notifications for detailed guidance when needed.

Who it affects

All Category-I Authorised Dealer banks, Authorised banks handling foreign investment transactions, Indian companies receiving foreign investment, Foreign investors (FIIs, NRIs, QFIs, venture capital investors)

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 14:51 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Status change: withdrawn 03 Aug 2026, 04:00 IST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The circular includes a sunset clause stating it will stand withdrawn on July 1, 2014, and be replaced by an updated Master Circular on foreign investment.

Does this circular cover investments in LLPs and partnership firms?

Yes, it covers investment in capital of Limited Liability Partnerships, partnership firms, or proprietary concerns, regulated under FEMA Notification No. FEMA 24/2000-RB.

Who should refer to this Master Circular for guidance?

AD Category-I banks and authorized banks should use it for general guidance, but refer to specific circulars/notifications for detailed information.

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

RBI/2013-14/15
 Master Circular No.15/2013-14
 (Updated as on June 18, 2014)
 July 01, 2013
 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 Limited Liability Partnership, 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 may be referred to for general guidance. The Authorised Dealer Category – I banks and Authorised banks may refer to respective circulars / notifications for detailed information, if so needed.
 3. This Master Circular is being issued with a sunset clause of one year.  This circular will stand withdrawn on July 1, 2014 and be replaced by an updated Master Circular on the subject. 
 Yours faithfully,
 (B. P. Kanungo)
 Principal Chief General Manager
 INDEX

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/15 · issued 18 Jun 2014. 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=8104&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.