ARTICLE
1 July 2013

Department Of Industrial Policy And Promotion (DIPP) Inserts Definition Of Group Company In The Consolidated FDI Policy

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DIPP vide its Press Note No. 2 dated 3rd June, 2013 incorporated the following definition of ‘Group Company’ in the FDI Policy contained in ‘Circular No. 1 of 2013 – Consolidated FDI Policy’.
India Corporate/Commercial Law

DIPP vide its Press Note No. 2 (2013 Series) dated 3rd June, 2013 incorporated the following definition of 'Group Company' in the FDI Policy contained in 'Circular No. 1 of 2013 – Consolidated FDI Policy' which was made effective from 5th April, 2013. "Group Company" means two or more enterprises which, directly or indirectly, are in a position to:

  1. exercise twenty -six per cent, or more of voting rights in other enterprise; or
  2. appoint more than fifty per cent, of members of board of directors in the other enterprise

The definition was inserted with immediate effect.

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