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

Textiles | On 26th Apr 2017

Kering's consolidated revenue growth rises 31.2% in Q1

The consolidated revenue growth for luxury group Kering for the first ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Interviews View All

Hannah Lane

Encouragement from brands will motivate supply chains to become more...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

April 2017

April 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search