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December 2013

A. P. (DIR Series) Circular No. 68 dated 1st November, 2013 Notification No. FEMA.292/2013- RB dated 4th October, 2013, Press Note No. 2 (2013 Series) dated June 3, 2013 – DIPP Foreign Direct Investment (FDI) in India – definition of ‘group company’

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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This circular has modified Notification No. FEMA. 20/2000-RB dated 3rd May 2000, by including the definition of the term ‘group company’ as follows: –

‘Group company’ means two or more enterprises which, directly or indirectly, are in position to:

(i) exercise 26%, or more, of voting rights in other enterprise; or

(ii) appoint more than 50% of members of board of directors in the other enterprise.

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