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.