Government of India
Ministry of Commerce & Industry
Department of Industrial Policy & Promotion
Press Note No. 2(2013 Series)
June 4, 2013
Subject : Foreign Direct investment Policy – definition of ‘group company’
1.0 The Government has decided to incorporate the following definition of ‘group company’ in the FDI Policy contained in ‘Circular 1 of 2013 – Consolidated FDI Policy’, effective from 05-04-2013:
| 2.1 | Definitions |
| 2.1.15 bis | “Group company” means two or more enterprises which, directly or indirectly, are in a position to :
(i) exercise twenty six per cent, or more of voting rights in other enterprise; or (ii) appoint more than fifty per cent, of members of board of directors in the other enterprise. |
2.0 The above decision will take immediate effect.
(D. V. Prasad)
Joint Secretary to the Government of India
D/o IPP File No. : No. 5/3/2005-FC.I dated 3 June 2013
Copy forwarded to:
1. Press Information Officer, Press Information Bureau- forgiving necessary publicity.
2. BE Section in the Department of Industrial Policy and Promotion-for uploading the Press Note on DIPP’s website.
3. Hindi Division, DIPP for providing Hindi version.
