Prior Reserve Bank approval required for specified corporate actions by Indian majority holders in foreign subsidiaries. If an Indian party holds a majority stake in a foreign entity and conditions such as short operation period, unrepatriated dues, unrealised export proceeds, need for further capital from India, or non lawful reduction of Indian equity exist, the Indian party must obtain prior Reserve Bank approval before consenting to: (a) any activity outside the original invested business; (b) participation in another foreign entity's capital; or (c) alteration of the company's authorised/issued capital or shareholding pattern. An exemption exists for investments funded solely from Exchange Earner Foreign Currency accounts or ADR/GDR resources.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prior Reserve Bank approval required for specified corporate actions by Indian majority holders in foreign subsidiaries.
If an Indian party holds a majority stake in a foreign entity and conditions such as short operation period, unrepatriated dues, unrealised export proceeds, need for further capital from India, or non lawful reduction of Indian equity exist, the Indian party must obtain prior Reserve Bank approval before consenting to: (a) any activity outside the original invested business; (b) participation in another foreign entity's capital; or (c) alteration of the company's authorised/issued capital or shareholding pattern. An exemption exists for investments funded solely from Exchange Earner Foreign Currency accounts or ADR/GDR resources.
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