Govt. amends FDI policy to curb opportunistic takeovers of Indian companies due to COVID-19 pandemic

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.