What are definitions of “Foreign Subsidiary”, “Foreign Associate” and “Special Purpose Vehicle”

Foreign ownership thresholds define classification of subsidiaries, associates and special purpose vehicles for FEMA reporting.

Definitions for FEMA reporting state that a Foreign Subsidiary exists where a non resident investor, alone or with its subsidiaries, holds majority voting power or equity; a Foreign Associate exists where a non resident investor, alone or with its subsidiaries, holds a material but non controlling stake within the prescribed ownership thresholds; and a Special Purpose Vehicle is a legal entity created for narrow or temporary objectives, typically with minimal operations, used to raise capital or hold assets and liabilities for FEMA classification and Annual Return on FLA purposes.