Foreign Direct Investment (FDI) in India - Definition of 'Group Company'

In respect of Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified 'Group company' means two or more enterprises
which, directly or indirectly, are in 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.