English Release 17-April 2014
- Vice President's Secretariat
- Vice President Addresses at Golden Jubilee and 48th Convocation of the Indian Institute of Foreign Trade
- Min of Commerce & Industry
- Commerce Secretary to Lead High-Level Delegation to India Show in Hong Kong
- Min of Defence
Indian Air Force Placement Cell (IAFPC) and Monster India Collaborate to Foster Job Opportunities for Retired Air Warriors
Admiral RK Dhowan PVSM, AVSM, YSM
- Admiral RK Dhowan Appointed the New CNS
- Min of Petroleum & Natural Gas
- Global crude oil price of Indian Basket increased to US$ 107.50 per bbl on 16.4.2014
- Ministry of Railways
Commodity-Wise Freight Revenue Earnings During Fiscal 2013-14
- Ministry of Water Resources
- Storage of Important Reservoirs in the Country (As on 27 March 2014)
Ministry of Commerce & Industry01-August, 2013 21:39 IST
|Review of the policy on foreign direct investment-definition of the term "control", for calculation of total foreign investment i.e. direct and indirect foreign investment in Indian companies |
|The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Industrial Policy & Promotion for amendment to the existing definition of "control" under the FDI policy. The revised definition will be as follows: |
Until now, the definition of "control", in the extant FDI policy is as under:
"A company is considered as "controlled" by resident Indian citizens if the resident Indian citizens and Indian companies, which are owned and controlled by resident Indian citizens, have the power to appoint a majority of its directors in that company".
The CCEA has now approved to define “control” as below:
" 'Control' shall include the right to appoint a majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreements or voting agreements."
The revised definition of 'control' will expand the definition of 'control' to cover 'control' exercisable inter-alia through management and policy decisions, shareholding, management rights, shareholder agreements and ensure alignment with the definition as per the Substantial Acquisition of Shares and Takeovers (SAST) Regulations, 2011 and the definition proposed in the Companies Bill, 2012.
(Release ID :97545)