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<h1>Foreign investment regulations define ownership thresholds, control structures, and downstream investment rules for Indian companies</h1> These regulations establish comprehensive guidelines for calculating total foreign investment in Indian companies, defining ownership and control structures, and governing downstream investments. The framework distinguishes between direct foreign investment from non-resident entities and indirect foreign investment through multi-layered Indian company structures.Key provisions include ownership thresholds where companies are considered resident-owned if over 50% capital is beneficially held by resident citizens, while control encompasses rights to appoint majority directors or influence management decisions. Total foreign investment combines both direct and indirect components, with specific sectoral caps requiring government approval for ownership or control transfers to non-residents.Downstream investment rules mandate notification requirements, funding restrictions, and annual compliance certification by statutory auditors. Special provisions apply to information and broadcasting sectors requiring resident ownership and control with specific shareholding structures. The regulations exclude certain debt instruments while including various foreign investment categories in calculations.