GOVERNMENT OF INDIA
Ministry of Commerce and Industry
DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION
STARRED QUESTION NO 96
TO BE ANSWERED ON 21.11.2007
Definition of Indirect Foreign Shareholding.
SHRI RAJEEV CHANDRASEKHAR
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:-
(a) whether the Department of Industrial Policy and Promotion has suggested a significant relaxation of the definition of indirect foreign shareholding;
(b) if so the details thereof; and
(c) by when a final decision in the matter is likely to be taken?
THE MINISTER OF COMMERCE & INDUSTRY
(SHRI KAMAL NATH)
(a) to (c): Foreign investment in an Indian Company investing in another Indian company is referred to as indirect foreign shareholding in the latter Indian company. Government has separately notified the policy for calculating foreign investment in Investment Companies in Infrastructure / Service Sectors attracting sectoral caps; Telecom Sector; Uplinking of TV Channels and Insurance Sector. The FDI policy including notified guidelines is reviewed on a continuous basis for further simplification / harmonization.