Shivaram (Service) (81 Points)
19 November 2010Dear Friends,
Can an Indian Public Company purchase majority stakes (of a foreign company) from existing shareholders of that foreign company (Secondary)? Is it permissable under Automatic Route - FEMA Regulations? Is there a necessity that the Investment by the Indian Company, be only through equity contribution (Primary)?
Thanks for all your help in advance.
Regards
Shiva
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 31 March 2011
| Originally posted by : Shivaram | ||
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Dear Friends, Can an Indian Public Company purchase majority stakes (of a foreign company) from existing shareholders of that foreign company (Secondary)? Is it permissable under Automatic Route - FEMA Regulations? Is there a necessity that the Investment by the Indian Company, be only through equity contribution (Primary)? Thanks for all your help in advance. Regards Shiva |
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Yes the Indian Company can do so. The same comes under automatic route. The investment can be even through secondary route.
Indian Company is entitled to invest upto 400% of its net worth as per last balance sheet. They need to file form ODI with in 30 days of remmitance .
CS Ainesh Jethwa
(Company Secretary)
(29 Points)
Replied 16 May 2011
Dear Sir,
Can you ellaborate about the ODI required to be filed by Indian Company with RBI in case of Foreign Investment. As I am totally new about this thing.
I shall be very thankfull for your help and concern.
CAclubindia
