Definition of group company clarifies FDI grouping criteria based on voting control or board appointment under FEMA regulations. A definition for group company was incorporated into the FDI regulatory framework: enterprises are related where one can exercise specified voting control in another or can appoint a majority of the other's board. The Reserve Bank issued the definition to Authorised Dealer Category I banks and amended the FEMA transfer/issue of security regulations accordingly; the directions are issued under the Foreign Exchange Management Act and are without prejudice to other statutory permissions.
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Definition of group company clarifies FDI grouping criteria based on voting control or board appointment under FEMA regulations.
A definition for group company was incorporated into the FDI regulatory framework: enterprises are related where one can exercise specified voting control in another or can appoint a majority of the other's board. The Reserve Bank issued the definition to Authorised Dealer Category I banks and amended the FEMA transfer/issue of security regulations accordingly; the directions are issued under the Foreign Exchange Management Act and are without prejudice to other statutory permissions.
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