Board of Approvals must be taken by Promoter for Decrease of Shareholding below 51%

[Ref: SEZ Circular No. 23 dated 16.07.2009]

Subject: Guidelines regarding “Proposal for FDIs”.

F.No. C.8/3/2009-SEZ dated 16 July 2009

In terms of the present guidelines, in SEZ, 100% FDI is permitted under automatic route. As decided in the 31st meeting of the Board of Approvals held on 15.01.2009, it may kindly be ensured by the promoter that his equity does not fall below 51%. In case the promoter decides to decrease the shareholding below 51% then prior approval of BoA must be taken.