TMI BlogDownstream InvestmentX X X X Extracts X X X X X X X X Extracts X X X X ..... LLP owned by resident Indian citizens shall mean an LLP where ownership is vested in resident Indian citizens and/ or Indian entities, which are ultimately owned and controlled by resident Indian citizens. (c) Company owned by persons resident outside India shall mean an Indian company that is owned by persons resident outside India. An LLP owned by persons resident outside India shall mean an LLP that is owned by persons resident outside India. (d) Control shall mean the right to appoint majority of the directors or to control the management or policy decisions including by virtue of their shareholding or management rights or shareholders agreement or voting agreement. For the purpose of LLP, Control shall mean the right t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) an investment vehicle whose sponsor or manager or investment manager (i) is not owned and not controlled by resident Indian citizens or (ii) is owned or controlled by persons resident outside India Provided no person resident in India other than an Indian entity can receive Indirect Foreign Investment. (j) Total Foreign Investment means the total of foreign investment and indirect foreign investment and the same will be reckoned on a fully diluted basis; (k) Strategic downstream investment means investment by banking companies incorporated in India in their subsidiaries, joint ventures and associates. (2) Indian entity which has received indirect foreign investment shall comply with the entry route, sectoral caps, pricing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) The methodology for calculating total foreign investment would apply at every stage of investment in Indian companies and thus in each and every Indian company; (d) For the purpose of downstream investment, the portfolio investment held as on March 31 of the previous financial year in the Indian company making the downstream investment shall be considered for computing its total foreign investment; (e) The indirect foreign investment received by a wholly owned subsidiary of an Indian company will be limited to the total foreign investment received by the company making the downstream investment; (5) Downstream investment made into Indian companies will be subject to the following conditions: (a) The downstream investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect from its statutory auditor on an annual basis. Such compliance of these regulations shall be mentioned in the Director's report in the Annual Report of the Indian company. In case statutory auditor has given a qualified report, the same shall be immediately brought to the notice of the Regional Office of the Reserve Bank in whose jurisdiction the Registered Office of the company is located and shall also obtain acknowledgement from the RO. (e) The provisions at (c) and (d) above shall be construed accordingly for an LLP. Note: Downstream investment made in accordance with the guidelines in existence prior to February 13, 2009 would not require any modification to conform to these regulations. All other investments, after the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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