Private equity

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P.C. Joshi (Querist)
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03 February 2012 AN insian pvt. ltd. company wants to invite a foreign partner to infuse funds in the company as a private equity basis. The indian company is in trading business. In my opinion the investment can be made under FDI policy upto 100% under automatic route.Am I right.

Second question is how the equity can be introduced by the company. of course increase in the authorised capital is one step.As section 81(1A) is applicable only to public companies can a pvt. company allot shares on private placement/preferential issue by simply a board resolution. can anyone pls advise.

thanks & Regards

PCJ

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Guest (Expert)

03 February 2012 FDI is prohibited in Retail Trading (except single brand product retailing) so make sure ur co. is not the one.

And yes, board resolution will do for allotment of shares

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