Review of Foreign Direct Investment (FDI) policy for curbing opportunistic takeovers /acquisitions of Indian companies due to the current COVID-19 pandemic

Foreign investment from neighbouring-border countries now subject to government approval to curb opportunistic takeovers during pandemic period.

The FDI policy amendment requires that investments by entities of countries sharing a land border with India, or where the beneficial owner is situated in or is a citizen of such a country, be routed only through the Government route; the Pakistan-specific Government route restriction remains except for certain prohibited sectors. Additionally, any transfer of existing or future FDI that causes beneficial ownership to fall within this restriction will likewise require Government approval. The change is effective from the date of the relevant foreign exchange notification.