Under Condition 39.23(viii) of the Unified Licence Agreement granted by the Department of Telecommunications, licensees are not permitted to transfer “subscriber accounting information” (except for roaming and related billing purposes) or “user information” (except if pertaining to foreign subscribers using an Indian Operator’s network while roaming, and International Private Leased Circuit subscribers) to any person or place outside of India. “User information” is not defined by Indian telecommunications law, and the requirements do not restrict financial disclosures imposed by statute. Condition 39.23(iii) prohibits the transfer of domestic technical network details to any place outside of India.

In accordance with Section 3 of the "Advisory for Financial Sector Organisations regarding Software as a Service (SaaS) based Solutions", certain categories of critical data, including credit and liquidity risk data, market risk data, system and sub-system information, supplier details, system configuration data, audit and internal audit records, as well as network topology and design, must be stored within the territorial jurisdiction of India. This advisory, issued by the Securities and Exchange Board of India (SEBI), applies to financial sector entities such as merchant banks, credit rating agencies, Straight Through Processing (STP) service providers, debenture trustees, depository participants, and other financial institutions that utilise SaaS-based solutions for the management of governance, risk, and compliance functions.

Pursuant to Section 18 of the "Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016", all customer data, including recordings generated through Video-based Customer Identification Processes (V-CIP), must be stored within the territorial jurisdiction of India. The utilisation of cloud-based solutions is permissible only on the condition that the regulated financial institution retains complete control over such data. In addition, the V-CIP infrastructure and associated applications must incorporate mechanisms to prevent access originating from Internet Protocol (IP) addresses located outside India, as well as from spoofed IP addresses.

Under Clause ix of the "Guidelines for Acquiring and Producing Geo-Spatial Data and Geo-Spatial Services including Maps", digital maps and geospatial data with spatial accuracy or value finer than the prescribed threshold must be stored and processed exclusively on domestic cloud infrastructure or on servers physically located within the territory of India. Conversely, data with spatial accuracy or value up to the threshold may be uploaded to cloud platforms.

Principle 3 of the "Framework for Adoption of Cloud Services by SEBI-Regulated Entities (REs)" stipulates that all data, including logs and any other information relating to the regulated entity, which is stored or processed in a cloud environment must remain within the territorial jurisdiction of India. A regulated entity refers to SEBI-registered or recognised intermediaries, such as brokers, mutual funds, KYC registration agencies, and qualified registrars to an issue (QRTAs), as well as market infrastructure institutions, including stock exchanges, clearing corporations, and depositories, all of which are subject to SEBI regulation.

Section 5.e of the Annexure to Circular No. PFRDA/2023/33/ICS/01 stipulates that entities regulated by the Pension Fund Regulatory and Development Authority (PFRDA) are required to ensure that all data storage and processing activities, including logs and any other information pertaining to the intermediary hosted on cloud infrastructure, are conducted strictly within the territorial jurisdiction of India.

According to Section 6.2.14 of the 2020 Consolidated Foreign Direct Investment (FDI) Policy Circular, full foreign direct ownership is permitted in the telecommunications sector (including Category-I Telecommunications Infrastructure Providers). However, government approval is required for FDI above 49%. This regulatory requirement has been in effect since the enactment of the Consolidated FDI Policy Circular 2013 (Section 6.2.15).

It is reported that the government holds shareholdings in certain telecommunications companies. In particular, it is reported that Bharat Sanchar Nigam Limited (BSNL) is a public sector undertaking wholly owned by the government. It is also reported that the government holds a 49% equity stake in Vodafone India Limited.

India applies a residency requirement for the members of the board of directors. Art. 149.3 of the 2013 Companies Act requires every company to have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year.

India does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, the Accounting Separation Regulation is applicable to all the service providers having aggregate turnover of not less than rupees one hundred crore (approx. 12,182,700 USD) during the accounting year for which report is required to be submitted from operations under the telecom license(s) issued to them under Chapter II of the Telecommunications Act, 2023. The telecom service providers are required to submit their audited accounting separation reports based on a historical cost basis every year and on a replacement cost basis every second year within seven months of the end of the accounting year.

According to the Consolidated Foreign Direct Investment (FDI) Policy Circular 2020, broadcasting services require that a majority of the company’s directors are Indian citizens. Additionally, the CEO, the chief officer responsible for technical network operations, and the chief security officer must all be resident Indian citizens. Furthermore, officers or officials of the licensee companies involved in the interception of services must also be Indian citizens. This requirement has been in effect since the implementation of the Consolidated Foreign Direct Investment (FDI) Policy Circular 2013 (Section 6.2.7.6)

According to the Consolidated Foreign Direct Investment (FDI) Policy Circular 2020, foreign direct investment in telecom services (including fixed, mobile, and internet) is subject to compliance with both licensing and security conditions by the licensees and investors. These regulatory requirements have been in place since the implementation of the Consolidated FDI Policy Circular 2013 (Section 6.2.15). The conditions are outlined in the License Agreement for Unified License, which applies to all telecom services across the country.
Internet Service Providers (ISPs) and Telecom Service Providers (TSPs) in India must comply with the License Agreement for the Provision of Internet Services. Additionally, TSPs are required to adhere to two separate license agreements: the Cellular Mobile Telephone Service (CMTS) License Agreement, which governs cellular mobile communications, and the License Agreement for the Provision of Basic Telephone Services (BTS), which covers landlines. Reports suggest that these licenses provide the government with significant access to communication data held and processed by service providers.
It is also noted that India’s one-time licensing fees—approximately USD 500,000 for a service-specific license or USD 2.7 million for an all-India Universal License—act as a barrier to market entry for small and medium-sized enterprises.

India has traditionally implemented FDI screening for investors from Bangladesh and Pakistan. According to Section 3.1.1 of the Consolidated FDI Policy 2020, non-resident entities may invest in India, subject to the conditions specified in the policy, except in prohibited sectors or activities. However, investment by citizens of Bangladesh or Pakistan is permitted solely through government approval. This regulatory requirement has been in effect since the enactment of the Consolidated FDI Policy Circular 2013 (Section 3.1.1).
Notwithstanding this framework, in April 2020, the Ministry of Commerce and Industry introduced the Review of Foreign Direct Investment (FDI) Policy for Curbing Opportunistic Acquisitions of Indian Companies (Press Note 3). Under this policy revision, the FDI regime was expanded to mandate government approval for investments from any entity based in a country that shares a land border with India. Furthermore, the policy stipulates that any direct or indirect transfer of ownership of existing or future FDI in India, which results in a change in beneficial ownership falling within the scope of the conditions set forth in the Press Note, will similarly require government approval.
This legislative adjustment primarily targeted China in response to escalating border tensions between the two nations. Since the introduction of Press Note No. 3, an estimated 150 private equity and venture capital investment applications from China and Hong Kong have remained pending government clearance.

According to Section. 6.2.14 of the 2020 Consolidated Foreign Direct Investment (FDI) Policy Circular, full foreign direct ownership is permitted in the telecommunications sector (including Category-I Telecommunications Infrastructure Providers). However, government approval is required for FDI above 49%. This regulatory requirement has been in effect since the enactment of the Consolidated FDI Policy Circular 2013 (Section 6.2.15).

According to the Patent Act, 1970 (Act No. 39 of 1970, as amended up to Act No. 15 of 2005) and the Patents Rules, 2003 (as amended up to Patents (Amendment) Rules, 2012), applications for copyright, trademark and patents can be filed online, however, design applications can only be filed in person. Moreover, applicants who do not have a registered place of business in India are required to file applications through an Indian attorney or agent.