INDIA: Review of definition of “control” under India Foreign Direct Investment (FDI) Policy by CCEA

Friday August 2 2013

The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Industrial Policy & Promotion for amendment to the existing definition of “control” under the India foreign direct investment (FDI) policy (Circular 1 of 2013). The revised definition will be as follows:

“Control shall include the right to appoint a majority of the directors or to control the management or policy decisions including control by virtue of their shareholding or management rights or shareholders agreements or voting agreements.”

The revised definition will be in line with that contained in the Substantial Acquisition of Shares and Takeovers (SAST) Regulations 2011 and the definition proposed in the Companies Bill 2012.

Please click on the above link for the Press Information Bureau press release.