| Sector or
Sub-sector |
Limitations
on Market Access |
Limitations
on National Treatment |
Additional
Commitments |
| FINANCIAL
SERVICES |
|
The commitments in financial
services are made in accordance with the General
Agreement on Trade in Services and the Annex on
Financial Services. All the commitments are
subject to entry requirements, domestic laws,
rules and regulations and the terms and
conditions of the Reserve Bank of India,
Securities and Exchange Board of India and any
other competent authority in India.
|
| A.
Insurance and Insurance-related services |
Non-life,
limited to Insurance of freight
Ex. 5(a)(i)(B) |
(1) Unbound
except in the case of insurance of freight,
where there is no requirement that goods in
transit to and from India should be insured with
Indian insurance companies only. Insurance is
taken by the buyer or seller in accordance with
the terms of the contract. This position will be
maintained. Once under a contract the Indian
importer or exporter agrees to assume the
responsibility for insurance such as in thee
case of f.o.b. contracts for imports into India
or c.i.f. contracts for exports from India,
insurance has to be taken only with an Indian
insurance company. |
(1) Unbound |
|
| |
(2) Unbound |
(2) Unbound |
|
| |
(3) Unbound |
(3) Unbound |
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
Reinsurance and
retrocession
5(a)(ii) |
(1),(2)
Reinsurance can be taken with foreign reinsurers
to the extent of the residual uncovered risk
after obligatory or statutory placements
domestically with Indian insurance companies. |
(1) Unbound
(2) Unbound |
|
| |
(3) Unbound |
(3) Unbound |
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
Insurance
intermediation, limited to reinsurance
Ex.
5(a)(iii) |
(1),(2)
Reinsurance of domestic risks can be placed with
foreign reinsurers through overseas brokers, to
the extent mentioned under reinsurance and
retrocession |
(1) Unbound
(2) Unbound |
|
| |
(3) (i)
Overseas brokers are allowed to have resident
representatives and representative offices who
can procure reinsurance business from Indian
insurance companies to the extent mentioned
above. They can also place reinsurance business
from abroad with Indian insurance companies. |
(3) Unbound |
|
| |
(ii) Except for
the business indicated above, the resident
representatives and representative offices
cannot undertake any other activity in India. |
|
|
| |
(iii) All
expenses of the resident representatives and
representative offices have to be met by
remittances from abroad and no income can be
received in India from Indian residents. |
|
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
| B.
Banking and other financial services (excluding
insurance) |
1.(i)
Acceptance of deposits and other repayable funds
from the public
5(a)(v) |
(1) Unbound
(2) Unbound |
(1) Unbound
(2) Unbound |
|
(ii) Lending of
all types, including consumer credit, mortgage,
credit and financing of commercial transactions
but excluding factoring
Ex. 5(a)(vi)
(iii) All
payment and money transmission services
including credit, charge and debit cards,
travellers cheques and bankers' drafts
5(a)(viii)
(iv) Guarantees and commitments
5(a)(ix) |
(3) (i) Only
through branch operations of a foreign bank
licensed and supervised as a bank in its home
country.
(ii) Grant of licence as permissible
under existing laws.
(iii) A limit of eight
licences per year both for new entrants and
existing banks.
(iv) Banks are allowed to
install ATMs at branches and at other places
identified by them. Installation of ATM at a
place other than in licensed branches is treated
as a new place of business and requires a
licence. Licences issued for ATMs installed by
foreign banks will not be included in the
ceiling of eight licences referred to in item
(iii) above. |
(3) (i) Foreign
banks are required to constitute Local Advisory
Boards consisting inter alia of
professionals and persons having expertise in
areas such as small-scale industry and exports.
The Chairman and members of the Local Advisory
Board must be resident Indian nationals except
for the Chief Executive Officer who may be a
foreign national. The appointment of Chairman
and members of the Board requires Reserve Bank
of India approval.
(ii) Foreign banks are
required topublish consolidated financial
statements of the Indian branches as at 31 March
every year. |
|
(v) Trading for
own account of:
(a) money market instruments
(b)
foreign exchange
(c) transferable securities
Ex. 5(a)(x)(A)(B)(E) |
(v) Investments
in other financial services companies by
branches of foreign banks licensed to do banking
business in India individually not to exceed 10
per cent of owned funds or 30 per cent of the
invested company's capital whichever is lower. |
(iii) Public
sector enterprises can invest surplus funds in
term deposits only with scheduled commercial
banks incorporated in India. |
|
(vi) Portfolio
management, custodial and trust services
Ex.
5(a)(xiii) |
|
|
|
(vii) Clearing
services for other banks for cheques, drafts and
other instruments
Ex. 5(a)(xiv) |
(vi) Licences
for new foreign banks may be denied when the
maximum share of assets in India both on and off
balance sheet of foreign banks to total assets
both on and off balance sheet of the banking
system exceeds 15 per cent. |
|
|
| |
(vii) Foreign
banks are subject to non-discriminatory resource
allocation requirements. |
|
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
2.
Participation in issues of all kinds of
securities, including underwriting and placement
as agent (whether publicly or privately) and
provision of services related to such issues
5(a)(xi) |
(1) Unbound
(2) Unbound
(3) (i) Foreign banks branches licensed to do
banking business in India.
(ii) Allowed for
foreign financial services companies (including
banks) through incorporation with foreign equity
not exceeding 51 per cent. |
(1) Unbound
(2) Unbound
(3) Unbound except for entities established in
accordance with the limitations specified in the
market access column. |
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
3. Stock
broking
Ex. 5(a)(x)(E) |
(1) Unbound
(2) Unbound |
(1) Unbound
(2) Unbound |
|
| |
(3) Through
establishment of locally incorporated joint
venture company with foreign equity not
exceeding 49 per cent. The foreign equity
participation will be limited to recognized
foreign stock broking companies. |
(3) Unbound
except for entities established in accordance
with the limitations specified in the market
access column. |
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
4. Financial
consultancy services, i.e. financial advisory
services provided by financial advisers, etc. to
customers on financial matters, investment and
portfolio research and advice, advice on
acquisitions and on corporate restructuring and
strategy
Ex. 5(a)(xvi) |
(1) Unbound
(2) Unbound
(3) (i) Foreign bank branches licensed to do
banking business in India.
(ii) Allowed for
foreign financial services companies (including
banks) through incorporation with foreign equity
not exceeding 51 per cent.
(4) Unbound except as
indicated in the horizontal section |
(1) Unbound
(2) Unbound
(3) Unbound except for entities established in
accordance with the limitations specified in the
market access column.
(4) Unbound except as
indicated in the horizontal section |
|
5. Factoring
Ex. 5(a)(vi) |
(1) Unbound
(2) Unbound |
(1) Unbound
(2) Unbound |
|
| |
(3) Allowed for
foreign financial services companies (including
banks) through incorporation with foreign equity
not exceeding 51 per cent. |
(3) Unbound
except for entities established in accordance
with the limitations specified in the market
access column. |
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
6. Financial
leasing
5. (a)(vii) |
(1) Unbound
(2) Unbound |
(1) Unbound
(2) Unbound |
|
| |
(3) Allowed for
foreign financial services companies (including
banks) through incorporation with foreign equity
not exceeding 51 per cent. |
(3) Unbound
except for entities established in accordance
with the limitations specified in the market
access column. |
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
| 7. Venture
capital |
(1) Unbound
(2) Unbound |
(1) Unbound
(2) Unbound |
|
| |
(3) (i) Allowed
for foreign financial services companies
(including banks) through incorporation with
foreign equity not exceeding 51 per cent. |
(3) Unbound
except for entities established in accordance
with the limitations specified in the market
access column. |
|
| |
(ii) Funding
has to be entirely out of equity. |
|
|
| |
(4) Unbound
except as indicated in the horizontal section |
(4) Unbound
except as indicated in the horizontal section |
|
Trade
