What are the formalities a joint venture company has to do to increase the foreign equity holding?
The following formalities are required for the joint venture that want to increase in their foreign equity holding by acquisition of shares or by any other means. a) If only the quantum of foreign equity increased without change in percentage then Press Note no. 7 (1999 series) may be followed. b) For increase in percentage of foreign equity by way of expansion of capital base, automatic route or FIPB / Government route would apply depending upon the nature of proposal in terms of Press Note No. 2 (2000 series) c) Cases involving increase in percentage in foreign equity by way of acquiring existing shares in an Indian company would necessarily require prior approval of FIPB/Government. d) In cases involving inclusion of an additional foreign collaborator, guidelines laid down in Press Note No. 18 (1998 series) would have to be satisfied. Return to TOP..
The following formalities are required for the joint venture that want to increase in their foreign equity holding by acquisition of shares or by any other means. a) If only the quantum of foreign equity increased without change in percentage then Press Note no. 7 (1999 series) may be followed. b) For increase in percentage of foreign equity by way of expansion of capital base, automatic route or FIPB / Government route would apply depending upon the nature of proposal in terms of Press Note No. 2 (2000 series) c) Cases involving increase in percentage in foreign equity by way of acquiring existing shares in an Indian company would necessarily require prior approval of FIPB/Government. d) In cases involving inclusion of an additional foreign collaborator, guidelines laid down in Press Note No. 18 (1998 series) would have to be satisfied.
