Guidelines for transfer of ownership or control of Indian companies in sectors with caps from resident Indian citizens to non-resident entities.

Foreign investment caps: Government approval required when ownership or control of firms passes to non-resident entities.

Prior Government approval is required where non-resident entities acquire ownership or control of Indian companies in sectors with foreign investment caps. 'Owned' means beneficial equity over 50% and 'controlled' means power to appoint a majority of directors; definitions apply conversely to non-resident entities. The rule covers establishment of companies with foreign participation and transfers of ownership or control in existing companies via share transfers, mergers, amalgamations or acquisitions in capped sectors, excluding sectors permitting 100% automatic foreign investment.