Downstream Investment

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.... by resident Indian citizens. An 'LLP owned by resident Indian citizens' shall mean an LLP where ownership is vested in resident Indian citizens and/ or Indian entities, which are ultimately owned and controlled by resident Indian citizens. (c) 'Company owned by persons resident outside India' shall mean an Indian company that is owned by persons resident outside India. An 'LLP owned by persons resident outside India' shall mean an LLP that is owned by persons resident outside India. (d) 'Control' shall mean the right to appoint majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreement or voting agreement. For the purp....

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....izens or (ii) is owned or controlled by persons resident outside India; or (ii) an investment vehicle whose sponsor or manager or investment manager (i) is not owned and not controlled by resident Indian citizens or (ii) is owned or controlled by persons resident outside India Provided no person resident in India other than an Indian entity can receive Indirect Foreign Investment. (j) 'Total Foreign Investment' means the total of foreign investment and indirect foreign investment and the same will be reckoned on a fully diluted basis; (k) 'Strategic downstream investment' means investment by banking companies incorporated in India in their subsidiaries, joint ventures and associates. (2) Indian entity ....

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.... and DRs having underlying of instruments in the nature of debt, shall not be reckoned for total foreign investment; (c) The methodology for calculating total foreign investment would apply at every stage of investment in Indian companies and thus in each and every Indian company; (d) For the purpose of downstream investment, the portfolio investment held as on March 31 of the previous financial year in the Indian company making the downstream investment shall be considered for computing its total foreign investment; (e) The indirect foreign investment received by a wholly owned subsidiary of an Indian company will be limited to the total foreign investment received by the company making the downstream investment;....