As published on indiablooms.com, Wednesday 12 January, 2022.
New Delhi/IBNS: The government may ease restrictions on some foreign direct investment after rules aimed at filtering out Chinese investments hindered inflow, Bloomberg reported.
Last year, government amended the FDI policy according to which an entity of a country, which shares a land border with India or where the beneficial owner of investment into India is situated in or is a citizen of any such country, can invest only under the government route.
Further, 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 said policy amendment, such subsequent change in beneficial ownership will also require government approval.
However, the government is looking at easing the scrutiny after investment proposals worth $6 billion were stuck amid the red tape, according to the Bloomberg report.
The proposal could be approved as early as the next month, said the report.
As of November 2021, over 100 proposals were awaiting clearance from the government, with around a quarter of them of over $10 million each, the report added.