Ministry of Industry and Commerce to save the domestic corporates and curb panic selling of businesses and to curb opportunistic takeovers by other countries like China at the current moment , the FDI policies have been reviewed and revised position is as follows.
The Land sharing borders countries can only invest through Government approval route and hence making it is a skeptic approach by GOI.
1. Present Position
Para 3.1.1: A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, a citizen of Bangladesh or an entity incorporated in Bangladesh can invest only under the Government route. 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.
2. Revised Position
Para 3.1.1:
3.1.1(a) 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. 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.
3.1.1(b) 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 para 3.1.1(a), such subsequent change in beneficial ownership will also require Government approval. 3. The above decision will take effect from the date of FEMA notification.
This website provides free updates to Businessmen , Chartered Accountants, Company Secretaries, Tax Professional, Cost Accountants and other Account Professional on Amendments in Income Tax, Wealth Tax, Goods and Services Tax, Company Law, Service Tax, ICAI Regulation, FEMA, RBI, Custom Duty, Excise, Labour laws, Corporate Law , Goods and Service Tax etc. We update our reader with latest News on these which includes recent Circular, Notification, Amendments, and Case Laws etc.
If you wish to write similar articles , you can Submit Articles at
To know Process to Write Articles at Taxgen.in
Team Taxgen.in
Comments