Query on FEMA regulation

Originally posted by : Shivaram
	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

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 .

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.