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
| 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.
CAclubindia
