Applicability of fdi regulations

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Ranjith Raj (Querist)
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28 October 2013 Around 30% of share capital of our company is held by a wholly owned subsidiary(indian company) of a Foreign Company. We have received a comment from a due diligence team that due to the above investment the entire FDI Policy is applicable to us except FCGPR reporting . Is their view correct?

Ajay Mishra

Ajay Mishra (Expert)
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28 October 2013 Hi

I think, ODI guidelines will apply, because you have made 30% investment outside India.

Ranjith Raj

Ranjith Raj (Querist)
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28 October 2013 we have not made any investment. Actually 30% of our share capital is held by a the subsidiary of foreign company. Investment is made to our company

Ajay Mishra

Ajay Mishra (Expert)
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28 October 2013 If investment is made by outsider in Indian company then yes the provision of FDI guidelines will apply. You will comply the provision of FEMA in this regard.

You also report the same to RBI.

Ajay Mishra

Ajay Mishra (Expert)
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28 October 2013 Go to the following link, it will help you:

https://www.caclubindia.com/articles/note-on-foreign-direct-investment-in-india-13412.asp#.Um48ixenyVE

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