DIPP vide its Press Note No. 2 (2013 Series) dated 3rd June, 2013 incorporated the following definition of ‘Group Company’ in the FDI Policy contained in ‘Circular No. 1 of 2013 – Consolidated FDI Policy’ which was made effective from 5th April, 2013.
“Group Company” means two or more enterprises which, directly or indirectly, are in a position to:
- exercise twenty -six per cent, or more of voting rights in other enterprise; or
- appoint more than fifty per cent, of members of board of directors in the other enterprise
The definition was inserted with immediate effect.