DIPP explains definition of ˜group company™ under new FDI Policy

Government of India

Ministry of Commerce & Industry

Department of Industrial Policy & Promotion

Press Note No. 2(2013 Series)

Subject : Foreign Direct investment Policy definition of ˜group company™

1.0 The Government has decided to incorporate the following definition of ˜group company™ in the FDI Policy contained in ˜Circular 1 of 2013  Consolidated FDI Policy™, effective from 05-04-2013:

2.1 Definitions
2.1.15 bis Group company means two or more enterprises which, directly or indirectly, are in a position to :(i) exercise twenty six per cent, or more of voting rights in other enterprise; or(ii) appoint more than fifty per cent, of members of board of directors in the other enterprise.

2.0 The above decision will take immediate effect.

 (D. V. Prasad)

Joint Secretary to the Government of India

D/o IPP File No. : No. 5/3/2005-FC.I dated 3 June 2013

Copy forwarded to:

1. Press Information Officer, Press Information Bureau- for giving necessary publicity.

2. BE Section in the Department of Industrial Policy and Promotion-for uploading the Press Note on DIPP’s website.

3. Hindi Division, DIPP for providing Hindi version.

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

Leave a Reply

Your email address will not be published. Required fields are marked *

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates