Foreign investment is prohibited by the government in which of the following sectors:
1. Lottery Business
2. Chit funds
3. Manufacturing to tobacco products
4. Real Estate Business
5. Real estate broking services
Select the correct answer using the code given below:
(a) 1,2,4 and 5 only
(b) 1,2 and 3 only
(c) 1,3,4 and 5 only
(d) 1,2,3 and 4 only
Explanation
Foreign investment is investment made by a person resident outside India. It is prohibited in the following sectors:
Lottery Business including Government/ private lottery, online lotteries.
Gambling and betting including casinos.
Chit funds
Nidhi company
Trading in Transferable Development Rights (TDRs).
Real Estate Business or Construction of farm houses.
For the purpose of this rule, 'real estate business shall not include development of townships, construction of residential or commercial premises, roads or bridges and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations, 2014.
Note: Real estate broking services are excluded from the definition of “real estate business” and 100% foreign investment is allowed in real estate broking services under automatic route.
Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes.
Activities/sectors not open to private sector investment viz., (i) Atomic energy and (ii) Railway operations
Foreign technology collaboration in any form including licensing for franchise, trademark, brand name, management contract is also prohibited for lottery business and gambling and betting activities.
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