FEMA compliance

Shivaram (Service) (81 Points)

24 November 2010  

Dear Friends,

Can an Indian Public Company purchase majority stakes (of a foreign company) from existing shareholders of that foreign company (Secondary)?  Is it permissable under Automatic Route - FEMA Regulations?  Is there a necessity that  the Investment by the Indian Company, be only through equity contribution (Primary)?

Thanks for all your help in advance.

Regards

Shiva