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FDI in Private Security Agency in India

Sectoral Caps - FDI in Private Security Agency in India


Sector/Activity
% of Equity/ FDI Cap
Entry Route
Private Security Agencies
74%
Automatic up to 49%
Government route beyond 49% and up to 74%

Other Conditions

(1) FDI in Private Security Agencies is subject to compliance with Private Security Agencies (Regulation) (PSAR) Act, 2005, as amended from time to time.

(2) For the purposes of FDI policy on the sector, terms “Private Security Agencies”, “Private Security” and “Armoured Car Service” will have the same meaning as provided under PSAR Act, 2005, which is reproduced as under:

"Private Security Agency" means a person or body of persons other than a government agency, department or organisation engaged in the business of providing private security services including training to private security guards or their supervisor or providing private security guards to any industrial or business undertaking or a company or any other person or property;
"Private Security" means security provided by a person, other than a public servant, to protect or guard any person or property or both and includes provision of armoured car service;
"Armoured Car Service" means the service provided by deployment of armed guards along with armoured car and such other related services which may be notified by the Central Government or as the case may be, the State Government from time to time.




Notes:
(1) FDI policy for Private Security Agency in India is prescribed in the Clause 5.2.13 of the Consolidated FDI Policy Circular of 2016 (D/o IPP F. No. 5(1)/2016-FC-1 Dated the June 07, 2016) issued by Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India.
(2) Clause 5.2.13 was modified by Press Note No. 5 of 2016 Series(File No. 5/4/2016-FC-I dated 24th June 2016) issued by DIPP - link 
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