Downstream investment rules: indirect foreign investment must follow the same entry, conditionality and sectoral cap requirements as direct investment. Downstream investment by Indian companies owned or controlled by non-resident entities is subject to the same entry route, conditionalities and sectoral caps as direct foreign investment; Press Note 2 (2009) provides the methodology for calculating total foreign investment at every stage. The policy distinguishes only operating companies, operating cum investing companies, and investing companies, prescribing sectoral compliance for recipients, mandatory prior Government approval for investing companies, notification requirements, board/shareholder approvals for equity induction, SEBI/RBI valuation rules, and inbound funding requirements for investing companies.
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 rules: indirect foreign investment must follow the same entry, conditionality and sectoral cap requirements as direct investment.
Downstream investment by Indian companies owned or controlled by non-resident entities is subject to the same entry route, conditionalities and sectoral caps as direct foreign investment; Press Note 2 (2009) provides the methodology for calculating total foreign investment at every stage. The policy distinguishes only operating companies, operating cum investing companies, and investing companies, prescribing sectoral compliance for recipients, mandatory prior Government approval for investing companies, notification requirements, board/shareholder approvals for equity induction, SEBI/RBI valuation rules, and inbound funding requirements for investing companies.
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