If the reporting Indian
company invests in equity and/or participating preference shares of overseas
company, under the Overseas Direct Investment Scheme in India, i.e. investment
in Joint venture or wholly owned subsidiaries abroad, then it should be
reported under Section IV of the FLA return. If the Indian company holds 10 per
cent or more equity plus participating preference shares together, in overseas
company, then it should be reported under 1.b ODI (item 1.1, claims on direct
investment enterprise). However, if the Indian company holds less than 10 per
cent of the equity plus participating preference shares capital of overseas
company, then it should be reported under 2.b DI (item 1.1, claims on direct investment
enterprise). In both the cases, the Indian company is called as the Direct
Investor (DI) while the overseas company is called as Direct Investment
Enterprise (DIE).
