Grey India Inc (GII) will
hold 1,88,260 equity shares of Grey Worldwide (India) as a non-resident
shareholder on repatriation basis
Monday, 07 June , 2004, 16:38
Advertising firm Grey India Inc (GII) will hold 1,88,260 equity shares
of Grey Worldwide (India) as a non-resident shareholder on repatriation
basis and has ceased to be an overseas corporate body following an approval
from Foreign Investment Promotion Board (FIPB).
Grey Worldwide had said all remittances towards the allotment of shares
to GII were received by way of foreign inward remittance through normal
banking channels. On a repatriation basis, Grey Worldwide (India) had
issued 1,88,260 shares of Rs 100 each in the paid-up capital of the
company to GII, an overseas corporate body.
Under RBIs automatic route, there were further issues of shares
to GII.
The company, which is engaged in advertising, publicity, sales promotion,
public relations, marketing and mass communication, clarified to the
Foreign Investment Promotion Board that it was not involved in publishing
any periodicals or related areas.
100 per cent FDI is allowed in the advertising industry, but the proposal
involved conversion of non-repatriation equity into repatriation, which
needed the Government nod.
Information and Broadcasting Ministry was of the view that there was
no objection to the proposal as long as the company's activities remained
in advertising sector.
Clearance was given on the condition that if the original investment
were made in India in rupee, an equivalent amount in convertible foreign
currency would have to be remitted to the account of the NRI.