ankitDecember 28th, 2016 at 6:22 pm

sir the example that you have mentioned (ford – tata and citi bank )
if citi bank gets 10 percent share , will it not be part of management ? and hence fdi not fii??

    adminDecember 28th, 2016 at 6:58 pm

    Investment of 10 % or more is NOT the ONLY criteria for it to be counted as FDI.

    The investment must also be in the PRIMARY MARKET and not secondary market for it be counted as FDI.

    So, if citi bank gets 10% or more shares but only if its investment is in the primary market , its investment will be counted as FDI and hence it will get management rights.

    However, if its investment is in secondary market , then even if its 10% or more, it will NOT be counted as FDI but as FII and hence NO management rights.

BlazeDecember 31st, 2016 at 9:53 pm

Hey hey hey, take a gadner at what’ you’ve done

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