FDI easing not for China firms; to benefit entities with minority Chinese holding
image for illustrative purpose
New Delhi: Overseas companies having Chinese shareholding of up to 10 per cent will be eligible to invest in India under the automatic route across sectors; however, the relaxed FDI norms will not apply to entities registered in China/Hong Kong or other countries sharing land borders with India, a senior official said on Wednesday.
Earlier, foreign firms with shareholders from these land border nations owning even a single share had to seek mandatory approval to invest in India in any sector.
The Union Cabinet on March 10 made changes in the press note 3 of 2020 in this regard. “All the restrictions for investors from land bordering countries (LBCs) are still applicable. There is no relaxation so far as entities or investors in LBCs are concerned,” Joint Secretary in the department for promotion of industry and internal trade (DPIIT) Jai Prakash Shivah are told reporters here.
