The company said that the suggestion of the violation of the FDI laws of India is completely misconceived and misplaced
Shares of Godfrey Phillips India ended 10 percent higher on March 11 after the company clarified on the news report about violation of the Foreign Direct Investment (FDI) laws by the company.
The company said that the suggestion of the violation of the FDI laws of India is completely misconceived and misplaced.
The company had entered into a commercial arrangement with IPM Wholesale Trading, an Indian entity and affiliate of Philip Morris International Inc., USA, to manufacture Marlboro cigarettes in India in May 2009 which is a year before May 2010 when the restrictions on FDI in manufacturing of cigarettes came into being, it said.
It added that the commercial arrangement referred to above was in complete compliance with the extant regulations governing the FDI laws in India.
"All business transactions entered and executed between the parties since 2009 are governed by the above referred commercial arrangement and incidentally, all the business transactions referred above are executed in Indian rupees," it added further.
At close, Godfrey Phillips India was at Rs 1,036, up Rs 94, or 9.98 percent on the BSE.
