Amendment of the existing policy on Foreign Direct Investment - definition of the term “control”, for calculation of total foreign investment i.e. direct and indirect foreign investment, in Indian companies
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Control definition expanded to include management, shareholding and agreement-based rights, affecting calculation of foreign investment. The term control for calculating total foreign investment is expanded to include the right to appoint a majority of directors or to control management or policy decisions by virtue of shareholding, management rights, shareholders agreements or voting agreements, replacing the earlier definition limited to appointment power; the amendment takes immediate effect.
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.
Control definition expanded to include management, shareholding and agreement-based rights, affecting calculation of foreign investment.
The term control for calculating total foreign investment is expanded to include the right to appoint a majority of directors or to control management or policy decisions by virtue of shareholding, management rights, shareholders agreements or voting agreements, replacing the earlier definition limited to appointment power; the amendment takes immediate effect.
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