The Department of Industrial Promotion and Policy (DIPP) has issued fresh guidelines for foreign investments in sectors with caps, such as defence production, civil aviation, broadcasting, insurance and telecoms, which require approval from the Foreign Investment Promotion Board (FIPB).
Downstream investment in Indian companies by investing companies is now subject to the guidelines in press notes 2 and 3 of 2009. Press note 2 lays down guidelines for the calculation of total foreign investment, which includes foreign direct investment (FDI) and indirect foreign investments (FIDI) across all sectors and activities.
Press note 3 lays down guidelines to determine the transfer of ownership or control of Indian companies in industries with sectoral caps and situations which would require FIPB approval.
You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
Ravi Singhania is the managing partner and Sunil Kumar is a partner in the tax practice at Singhania & Partners. The firm is headquartered in Noida and has offices in New Delhi, Mumbai, Bangalore and Hyderabad.
H-186, Sector 63
Noida, 201 301 (NCR of Delhi), India
Tel: +91 (120) 463 1000
Fax: +91 (120) 463 1001