Dear All,
please suggest your views on the following issues.
facts: there is an indian company (company incorporated under companies act 1956 and all promoters are Residents) called "H" ltd. This "H" ltd is engated in financial services sector and a listed company in india.
Now this company has established a new company (called "S" Private Ltd) in india holding 99% stake. This new comany will be engaged in Information Technology in india.
Now this "H" wants to make ODI outside india through "S" private limited.
Q-1 = first of all is this allowed ?
Q-2 = if allowed, then will the "S" company will be treated as indian party by seperating it from "H" company, then the relevant provisions of ODI circular will be applicable. OR will this "S" company is treated on par with "H" company and then ODI provisions will be applicable?
pls give your valuable views on this issue.
thanks in advance
shruthy
CAclubindia
