[Economy] On What basis 49-51% are calculated in FDI?

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Basheer asked,

what is this 51% and 100%...on what basis those percentages are allowed for fdi....i mean if 51% in multibrand is allowed thn how can they maintain tht 51 %.

Situation #1

• Anil Kapoor is running a mall in Mumbai (or a big retail-mall chain, having  presence in all big cities) and his total investment is 49 crores.
• Then Tom Cruise cannot invest more than 51 crores in this mall.

Situation #2

• Tom Cruise dreams to open a retail mall chain in India, he calculates it'd require total investment of 100 crores. 
• Even if he has 5000 crores, he can only put 51 crores from his side and he'll have to find one or more Indian players to invest the remaining 49 crores, else his dream will become a 'Mission impossible' (Ghost protocol)

Situation #3

• Anil Kapoor has a public listed company doing the retail business (i.e. they've shares in sharemarket)
• In this case Anil might issue extra shares on preferential basis to Mr.Cruise upto the limit of 51% in total investment
• On these shares, the dividend cannot be more than the limits given by Finance ministry.

Percentage Calculation

49-51 sharing percentage is calculated on total investment, which can be anything.

• Total investment 204 crore(100%)=Anil's 100 cr.(49%)+Tom's 104 cr.(51%)
• Total 1020 (100%)=500 (49%)+520 (51%)