Department for Promotion of Industry and Internal Trade has amended the FDI policy for curbing opportunistic takeovers/acquisitions of the Indian companies affected current situation of lockdown and COVID-19 pandemic.
The new amendment requires certain investment to come through the government approval route alone, and not under the direct route of investment, which means A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited.
It has decided to put all FDI proposals from countries sharing border with India under the government approval route. Companies whose beneficial ownership is vested in such countries will also have to undergo government scrutiny for any change in foreign holding. Further, a citizen of Pakistan or an entity incorporated in Pakistan can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.
The new amendment has modified the earlier position which placed some restrictions on citizens and/or entities of Bangladesh and Pakistan who can invest, only under the Government route, in sectors/activities other than defence, space, atomic energy and sectors/activities prohibited for foreign investment.
Click here to read the Notification.
