India amends extant FDI policy for curbing takeovers

As per the revised policy, a non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.

In the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the above, such subsequent change in beneficial ownership will also require Government approval, a press note issued by the department for promotion of industry and internal trade, ministry of commerce and industry, said.

Fibre2Fashion News Desk (RKS)