FDI policy mentions start-ups for 1st time; AI may remain in domestic hands

Start-ups can issue convertible notes to persons residing outside India under certain conditions

The consolidated foreign direct investment (FDI) policy, released by the government on Monday, has mentioned start-ups for the first time.

It also said the rule allowing foreign airlines to own up to 49 per cent in Indian carriers did not apply to Air India.

Effective immediately, the updated version of the policy lists all changes in rules regarding FDI since the last policy was released in June 2016.

Start-ups can issue equity, equity linked instruments and debt instruments to foreign venture capital investors in accordance with FEMA rules. They can also issue convertible notes to persons residing outside India under