Downstream investment permission: foreign owned Indian holding companies may invest in Annexure III activities under automatic approval subject to conditions. Foreign-owned Indian holding companies may undertake downstream investments in Annexure III activities eligible for Automatic Approval provided investments stay within permitted foreign equity limits, the investee's activities are confined to Annexure III, increases in equity result from expansion or fresh equity, and excluded categories (EOU/STP/EHTP projects, compulsory licensing items, SSI reserved items, transfers or buybacks) obtain prior Government/FIPB approval. Holding companies must notify SIA within thirty days, support inductions of foreign equity with board resolutions, agreements and consent letters, follow SEBI/RBI rules on share issue and valuation, and bring funds from abroad rather than leverage domestic markets.