Home / Knowledge / News / Indian govt issues definition of 'Group Company' for FDI
Indian govt issues definition of 'Group Company' for FDI
04
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: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Kerem Durdag
Biovation II LLC

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search