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Disclosure norms on investments from neighbour nations tightened

This is alignment with the tweaked FDI policy of 2020 under the approval route to curb hostile takeovers

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Under the new norms, the receiving entity (Indian firm) has to specify whether the investment sought is from a border country

Shrimi Choudhary New Delhi
The government has tightened disclosure norms for companies seeking investment from countries with which India shares land borders.

The Ministry of Corporate Affairs (MCA) has amended the rules on issuing a prospectus and allotting shares to ensure companies are compliant with foreign direct investment norms. The move will refine India’s current investment approval mechanism.

Under the new norms, the receiving entity (Indian firm) has to specify whether the investment sought is from a border country. The receiving entity has to mention in its application whether the proposed share allotment requires approval under foreign exchange management rules and, if so, whether it has

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