Question : SALE OF SHARES BY FOREIGN COMPANIES



(a) whether foreign companies are opting to sell their share in Indian companies;

(b) If so, the details thereof and the reasons therefor; and

(c) the reaction of the Government thereto?

Answer given by the minister


Minister of State in the Ministry of Finance (SHRI NAMO NARAIN MEENA)

(a) As per the FDI policy, investments by foreign companies are repatriable at any time, barring in a few sectors like Defence and Construction & Development, where there is a specified lock-in period. As such, depending upon business considerations, foreign companies do opt to sell their shares in Indian Companies.

(b) & (c) One of the ways provided by SEBI througn which foreign companies may sell their share is through Offer for Sale. Details of such sales are given below:

As per the Offer for Sale Issues from April 01, 2010 tilt July 31, 2012, the foreign companies have sold their shares in following listed companies:

Sr. No.	Name of Issue	Name of Foreign Entity
1. Va Tech Wabag Limited GLG Emerging Markets Fund, Passport India Investments (Mauritius) Limited.
2, MT Educare Helix Investments
3. Multi Commodity Exchange GLG Financial Fund, Alexandra Mauritius Limited of India Limited
4. Flexituff International Clearwater Capital Partners Limited

The above transactions have taken place in accordance with the extant regulatory framework.