INDIA: Constitution of Committee for amending the definition of India FDI and India FII

Wednesday April 3 2013

In order to remove the ambiguity that prevails on what is India Foreign Direct Investment (FDI) and what is India Foreign Institutional Investment (FII), it has been proposed to lay down a broad principle that, where an investor has a stake of 10 percent or less in a company, it will be treated as FII and, where an investor has a stake of more than 10 percent, it will be treated as FDI.

A committee has now been constituted to examine the application of the principle and to work out the details of the application of the principle for defining FDI and FII.

Click on the above link for the press release.