Bengaluru: Food and grocery delivery platform Swiggy has proposed changes to its board framework to become an India-owned and controlled company (IOCC) under India's foreign exchange laws, the company said in an exchange filing on Wednesday.Swiggy made these comments to clarify that its proposed board nomination framework is part of a broader effort to qualify as an IOCC, addressing queries raised by institutional investors about the amendments.Under current Foreign Exchange Management Act, a company can qualify as an IOCC only if both ownership and control rest with resident Indian citizens or eligible Indian entities, including through a board composition and nomination framework supporting domestic control.As Swiggy doesn't have an Indian promoter group holding a substantial stake or board representation, it has proposed the amendments as part of its journey to become an IOCC. As of September last year, foreign investors held just under 60% of its shares.
Swiggy moves to become India-owned and controlled company under FEMA rules
Swiggy is set to revamp its board structure, aiming to establish itself as a wholly Indian concern. This evolution, motivated by inquiries from stakeholders, comes as the company navigates the complexities of foreign investments, which represent around 60% of its shares. This change marks a crucial chapter in Swiggy's bid for greater autonomy within Indias competitive food delivery landscape.
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