Advertising firm Grey India Inc 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 the Foreign Investment Promotion Board.
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, according to sources.
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 Grey India Inc, an overseas corporate body.
Under the Reserve Bank of India'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 FIPB that it was not involved in publishing any periodicals or related areas.
Hundred 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.
The 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 the advertising sector.
Clearance was given on the condition that if the original investment was made in India in rupee, an equivalent amount in convertible foreign currency would have to be remitted to the account of the NRI.
