Home / Knowledge / News / Indian govt issues definition of 'Group Company' for FDI
Indian govt issues definition of 'Group Company' for FDI
Jun '13
The Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce & Industry, has issued a notification on definition of ‘Group Company’ in the Foreign Direct Investment (FDI) Policy.
“Group Company” means two or more enterprises which, directly or indirectly, are in a position to (i) exercise 26 percent, or more of voting rights in other enterprise; or (ii) appoint more than 50 percent, of members of board of directors, in the other enterprise, the statement said.
The new definition has come into immediate effect and has been incorporated in the FDI Policy contained in ‘Circular I of 2013 – Consolidated FDI Policy’, that became effective from April 5, 2013.
The new definition is expected to check foreign wholesale companies from selling more than 25 percent of goods to their affiliated firms.
The DIPP notification has come in the wake of clarification sought by US retail giant Walmart and its Indian partner Bharti Enterprises after questions were raised over amount of sales made by Bharti-Walmart (50:50 joint venture) to Bharti Retail, a wholly-owned subsidiary of the Bharti Enterprises.
In 2010, the DIPP had put a 25 percent cap on cash-and-carry firms for selling goods to ‘group companies’, as FDI in retail segment was not allowed then.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Lenzing

Textiles | On 25th Jun 2018

Lenzing launches Veocel nonwoven speciality brand

Leading fibre company, the Lenzing Group has unveiled Veocel, the new ...

Interviews View All

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search