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4440 dated 11/01/2017 |
M/s Quess Corp Ltd |
The proposal of M/s Quess Corp Limited [Investor] for acquiring 25% (above 49%)of the equity shares of M/s Terrier Security Services (India) Private Limited [Downstream company] engaged in the business of Private Security Agencies, by way of transfer of shares from the resident Indian, in terms of DIPP’s Press Note No.5(2016) could not be acceded to for the reason as below.
DIPP, vide Press Note 5 of 2016 dated 24.06.2016, proposed to permit FDI upto 74%, out of which upto 49% is on automatic route and beyond 49% and upto 74% is under approval/Government route,but this clause has not been notified so far in FEMA. Also, FDI policy stipulated in the Press Note is subject to compliance with Private Security Agencies (Regulation) Act, 2005 under which majority shareholdercan not be a foreigner [Section 6(2) of the PSAR Act]. As such, extant FDI policy for this sector is FDI upto 49% with Government approval. |
Private Security Agencies |
