APR Constructions Limited - Saffron Capital

RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES
Foreign investment in Indian securities is regulated through the Industrial Policy, 1991 (the “Industrial Policy”) of
the GoI and FEMA. While the Industrial Policy prescribes the limits and the conditions subject to which foreign
investment can be made in different sectors of the Indian economy, FEMA regulates the precise manner in which
such investment may be made. Under the Industrial Policy, unless specifically restricted, foreign investment is freely
permitted in all sectors of Indian economy upto any extent and without any prior approvals, but the foreign investor is
required to follow certain prescribed procedures for making such investment. FIIs are permitted to subscribe to shares
of an Indian company in a public offer without the prior approval of the RBI, so long as the price of the equity shares
to be issued is not less than the price at which the equity shares are issued to residents. The transfer of shares between
an Indian resident and a non-resident does not require the prior approval of the FIPB or RBI, provided that (i) the
activities of the investee company are under the automatic route under the foreign direct investment (“FDI”) Policy
and transfer does not attract the provisions of the SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 1997 (ii) the non-resident shareholding is within the sectoral limits under the FDI policy; and (iii) the
pricing is in accordance with the guidelines prescribed by SEBI/ RBI. As per the existing policy of the Government of
India, OCBs cannot participate in this Issue.
100% foreign investment is permissible under the automatic route in the industry in which our Company operates,
provided that our Company complies with the requirements as specified under FEMA and the relevant Rules and
Regulations framed there-under.
The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other
jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such
jurisdiction, except in compliance with the applicable laws of such jurisdiction.
The above information is given for the benefit of the Bidders. Our Company and the BRLMs are not liable for any
amendments or modification or changes in applicable laws or regulations, which may occur after the date of the
Draft Red Herring Prospectus. Bidders are advised to make their independent investigations and ensure that the
number of Equity Shares Bid for do not exceed the applicable limits under laws or regulations.
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