Thursday, 17 September 2015

FDI Policy – Facility Sharing Arrangements between Group Companies/Issuance of Partly Paid up shares and Warrants

This Regulatory Alert summarizes the (i) Clarification issued by Department of Industrial Policy & Promotion (DIPP) on the foreign direct investment (FDI) Policy on facility sharing arrangement between group companies; and (ii) Review of FDI Policy by DIPP on issuance of party paid shares and warrants.
The clarification on facility sharing arrangements issued by DIPP is a welcome move for companies which have foreign investment and sharing common space between the companies or having unutilised common space and willing to lease the same to group companies for its use.
The review of FDI policy is to remove the anomaly so existing in the FDI policy on issuance of the partly-paid up shares and warrants to non-residents.

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