Downstream investment by a banking company incorporated in India, which is owned and/or controlled by non-residents/ a non-resident entity/non-resident entities - Insertion of a Note below paragraph 3.10.4.1 of 'Circular 1 of 2012-Consolidated FDI Policy'
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Downstream investment treatment: banking-company restructuring and trading-book investments excluded from indirect foreign investment, but strategic subsidiary investments included. Downstream investments by an Indian banking company owned or controlled by non-residents made under Corporate Debt Restructuring, other loan restructuring mechanisms, held in trading books, or arising from acquisition of shares due to loan defaults shall not count as indirect foreign investment; however, strategic downstream investments-investments by these banks in their subsidiaries, joint ventures and associates-shall count towards indirect foreign investment.
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.
Downstream investment treatment: banking-company restructuring and trading-book investments excluded from indirect foreign investment, but strategic subsidiary investments included.
Downstream investments by an Indian banking company owned or controlled by non-residents made under Corporate Debt Restructuring, other loan restructuring mechanisms, held in trading books, or arising from acquisition of shares due to loan defaults shall not count as indirect foreign investment; however, strategic downstream investments-investments by these banks in their subsidiaries, joint ventures and associates-shall count towards indirect foreign investment.
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