RESTRICTED
WORLD TRADE GATS/SC/42/Suppl.1
28July1995
ORGANIZATION
(95-2226)
Trade inServices
INDIA
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inEnglish only)
_________________
This textreplaces theFinancial Services section contained inpages 10to16of
document GATS/SC/42.
_________________
India reserves therighttomake technical changes totheSchedule andtocorrect anyerrors,
omissions orinaccuracies.INDIA -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
7.FINANCIAL SERVICES
Thecommitments infinancial services aremade inaccordance withtheGeneral Agreement onTrade inServices andtheAnnex onFinancial Services. Allthe
commitments aresubject toentry requirements, domestic laws, rules andregulations andtheterms andconditions oftheReserve Bank ofIndia, Securities and
Exchange Board ofIndia andanyother competent authority inIndia.
A.Insurance and
Insurance-related services
Non-life, limited to
Insurance offreight
Ex.5(a)(i)(B)(1)Unbound except inthecaseofinsurance
offreight, where there isnorequirement
thatgoods intransit toandfrom India
should beinsured withIndian insurance
companies only. Insurance istaken by
thebuyer orseller inaccordance withthe
terms ofthecontract. Thisposition will
bemaintained. Once under acontract the
Indian importer orexporter agrees to
assume theresponsibility forinsurance
such asintheecaseoff.o.b. contracts for
imports intoIndia orc.i.f. contracts for
exports from India, insurance hastobe
taken onlywithanIndian insurance
company.(1)Unbound
(2)Unbound (2)Unbound
(3)Unbound (3)Unbound
GATS/SC/42/Suppl.1
Page1INDIA (continued)GATS/SC/42/Suppl.1
Page2
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section
Reinsurance and
retrocession
5(a)(ii)(1)Reinsurance canbetaken withforeign
reinsurers totheextent oftheresidual
uncovered riskafter obligatory or
statutory placements domestically with
Indian insurance companies. Atpresent
thisamounts to10percentofthe
premium ofthemarket overall being
reinsured abroad. Thiswillbe
maintained.(1)Unbound
(2)Reinsurance canbetaken withforeign
reinsurers totheextent mentioned above2)Unbound
(3)Unbound (3)Unbound
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section
Insurance intermediation,
limited toreinsurance
Ex.5(a)(iii)(1)Reinsurance ofdomestic risks canbe
placed withforeign reinsurers through
overseas brokers, totheextent mentioned
under reinsurance andretrocession(1)UnboundINDIA (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(2)Same asabove (2)Unbound
(3)(i) Overseas brokers areallowed to
have resident representatives and
representative offices whocan
procure reinsurance business from(3)Unbound
Indian insurance companies tothe
extent mentioned above. They can
alsoplace reinsurance business from
abroad withIndian insurance
companies.
(ii) Except forthebusiness indicated
above, theresident representatives
andrepresentative offices cannot
undertake anyother activity inIndia.
(iii) Allexpenses oftheresident
representatives andrepresentative
offices have tobemetby
remittances from abroad andno
income canbereceived inIndia
from Indian residents.
GATS/SC/42/Suppl.1
Page3INDIA (continued)GATS/SC/42/Suppl.1
Page4
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section
B. Banking andother
financial services
(excluding insurance)
1.(i) Acceptance ofdeposits
andother repayable
funds from thepublic
5(a)(v)(1) Unbound
(2) Unbound(1) Unbound
(3) UnboundINDIA (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(ii) Lending ofalltypes,
including consumer
credit, mortgage, credit
andfinancing of
commercial transactions
butexcluding factoring
Ex.5(a)(vi)
(iii) Allpayment andmoney
transmission services
including credit, charge
anddebit cards,
travellers cheques and
bankers 'drafts
5(a)(viii)(3) (i) Only through branch operations of
aforeign bank licensed and
supervised asabank initshome
country.
(ii) Grant oflicence aspermissible
under existing laws.
(iii) Alimit ofeight licences peryear
bothfornewentrants andexisting
banks.
(iv) Banks areallowed toinstal ATMs
atbranches andatother places
identified bythem. Installation of
ATM ataplace other thanin
licensed branches istreated asa
newplace of(3) (i) Foreign banks arerequired to
constitute Local Advisory Boards
consisting inter aliaof
professionals andpersons having
expertise inareas such assmall-
scale industry andexports. The
Chairman andmembers ofthe
Local Advisory Board must be
resident Indian nationals except
fortheChief Executive Officer
whomaybeaforeign national.
Theappointment ofChairman and
members oftheBoard requires
Reserve Bank ofIndia approval.
GATS/SC/42/Suppl.1
Page5INDIA (continued)GATS/SC/42/Suppl.1
Page6
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(iv)Guarantees and
commitments
5(a)(ix)
(v)Trading forownaccount
of:
(a) money market
instruments
(b) foreign exchange
(c) transferable
securities
Ex.5(a)(x)(A)(B)(E)
(vi) Portfolio management,
custodial andtrust
services
Ex.5(a)(xiii)business andrequires alicence.
Licences issued forATMs installed
byforeign banks willnotbe
included intheceiling ofeight
licences referred toinitem (iii)
above.
(v)Investments inother financial
services companies bybranches of
foreign banks licensed todobanking
business inIndia individually notto
exceed 10percentofowned funds
or30percentoftheinvested
company 'scapital whichever is
lower.(ii)Foreign banks arerequired to
publish consolidated financial
statements oftheIndian branches as
at31March every year.INDIA (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(vii) Clearing services for
other banks forcheques,
drafts andother
instruments
Ex.5(a)(xiv)(vi)Licences fornewforeign banks may
bedenied when themaximum share
ofassets inIndia bothonandoff
balance sheet offoreign banks to
totalassets bothonandoffbalance
sheet ofthebanking system exceeds
15percent.
(vii) Foreign banks aresubject to
non-discriminatory resource
allocation requirements.
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section
GATS/SC/42/Suppl.1
Page7INDIA (continued)GATS/SC/42/Suppl.1
Page8
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
2.Participation inissues of
allkinds ofsecurities,
including underwriting
andplacement asagent
(whether publicly or
privately) andprovision
ofservices related tosuch
issues
5(a)(xi)(1)Unbound
(2)Unbound
(3)(i) Foreign banks branches licensed to
dobanking business inIndia.
(ii) Through incorporation withforeign
equity notexceeding 51percent
byfinancial services companies
(including banks).(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal sectionINDIA (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
3.Stock broking
Ex.5(a)(x)(E)(1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)Through establishment oflocally
incorporated joint venture company with
foreign equity notexceeding 49percent.
Theforeign equity participation willbe
limited torecognized foreign stock
broking companies.(3)None
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section
GATS/SC/42/Suppl.1
Page9INDIA (continued)GATS/SC/42/Suppl.1
Page10
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
4.Financial consultancy
services, i.e.financial
advisory services
provided byfinancial
advisers, etc.to
customers onfinancial
matters, investment and
portfolio research and
advice, advice on
acquisitions andon
corporate restructuring
andstrategy
Ex.5(a)(xvi)(1)Unbound
(2)Unbound
(3)(i) Foreign bank branches licensed to
dobanking business inIndia.
(ii) Through incorporation withforeign
equity notexceeding 51percent
byfinancial services companies
(including banks).
(4)Unbound except asindicated inthe
horizontal section(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated inthe
horizontal sectionINDIA (continued)
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
5.Factoring
Ex.5(a)(vi)(1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)Through incorporation withforeign equity
notexceeding 51percentbyfinancial
services companies including banks.(3)None
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section
6.Financial leasing
5.(a)(vii)(1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)Through incorporation withforeign equity
notexceeding 51percentbyfinancial
services companies (including banks).(3)None
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section
GATS/SC/42/Suppl.1
Page11INDIA (continued)GATS/SC/42/Suppl.1
Page12
Modes ofsupply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4)Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
7.Venture capital (1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)(i) Through incorporation withforeign
equity notexceeding 51percent,
byfinancial companies including
banks.(3)None
(ii) Funding hastobeentirely outof
equity.
(4)Unbound except asindicated inthe
horizontal section(4)Unbound except asindicated inthe
horizontal section