The Department of Industrial Policy and Promotion, the nodal agency for formulating foreign equity policy norms, has proposed that investment by a foreign firm in an Indian company, routed through another Indian company that owns up to 10 per cent stake in the company in which the investment is to take place, should not be considered as foreign holding. The relaxation, however, will only be applicable if the company through which the investment is being routed formally declares that it is not acting in concert with other foreign investors in the joint venture (JV). If the shareholding company acts in concert with foreign investors, or if the level of indirect ownership crosses 10 per cent, the government can take this shareholding into account on a proportionate basis as foreign equity.