Saturday, March 15, 2014

FDI into a SSI / MSE and in Industrial Undertaking manufacturing items reserved for SSI/MSE

An Indian Company may issue shares or convertible debentures to a person resident outside India in
excess of 24% of its capital if:

  • It has given up its Small Scale Industrial Undertaking (SSI) status, and
  • It is not engaged or does not propose to engage in manufacture of items reserved for small scale sector 

Any Industrial undertaking, with or without Foreign Direct Investment (FDI), which is not an Medium and Small Enterprises (MSE), having an industrial license under the provisions of the Industries (Development & Regulation) Act, 1951 for manufacturing items reserved for manufacture in the MSE sector may issue shares in excess of 24 per cent of its paid up capital with prior approval of the Foreign Investment Promotion Board of the Government of India.

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