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Q.42: WHAT ARE THE PROVISIONS WITH REGARD TO DOWNSTREAM INVESTMENT FOR AN INVESTMENT VEHICLE?


Investment made by an Investment Vehicle into an Indian company or an LLP will be indirect foreign investment for the investee company or the LLP, as the case may be, if either the Sponsor or the Manager or the Investment Manager (i) is not owned and not controlled by resident Indian citizens or (ii) is owned or controlled by persons resident outside India.

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