Foreign Direct investment Policy – definition of 'group company' - FEMA - Press Note No. 2(2013 Series)

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- forgiving 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.