Circular No. 2 of 2010, dated 30-9-2010 issued by the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India.

(i) Incorporation of Press Note 2 of 2010, relating to the
prohibition on manufacture of cigarettes, etc.

(ii) Clarification on the coverage of ‘controlled
conditions’ for FDI in agriculture, animal
husbandry, etc.

(iii) Clarification on the concept of value addition in
case of mining and mineral separation of titanium bearing minerals.

(iv) Clarification that 100% foreign owned NBFCs, with a
minimum capitalisation of $ 50 million, can set up subsidiaries for specific
NBFC activities, without bringing additional capital towards minimum
capitalisation.

(v) Introduction of specific provision for
downstream investment through internal accruals.

(vi) Clarification of the terms ‘original investment’ and
‘lock-in period’ in case of minimum capitalisation of construction development
projects.

(vii) Removal of the condition that ‘wholesale trading made
to group companies should be for internal use only’ in the guidelines for Cash
& Carry Wholesale Trading.

(viii) Clarification that minimum capitalisation includes
share premium received along with face value of the shares only when it is
received by the company upon issue of the shares to the non-resident
investors.

(ix) Amendment of Note below the definition of ‘Capital’ to
allow for FDI in partly-paid shares and warrants through the Government route.

(x) Changes in the paragraphs relating to issue price of
shares and addition of a paragraph on share-swaps, consistent with extant
instructions.