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 RBI’s 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.