India has clamped down on investments from China making prior government clearance mandatory for all forms investments, even indirect ones, from all countries sharing land border with the country.
The department for Promotion of Industry and Internal Trade on Saturday issued a press note 3 (2020 series) stating that foreign investments from countries with which India shares land border shall be under approval route. Also, transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in beneficial ownership falling within this restriction will require government approval. The move comes close on the heels of market regulator Sebi asking custodian banks to disclose details of `ultimate beneficial owners’ of foreign portfolio investors (FPIs) based in China and Hong Kong. Read More…
