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No hostile takeover of Indian firms: New FDI guidelines come into effect

The updated FEMA Rules came into effect from Thursday midnight

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While existing investments shall remain unaffected, any fresh infusion by Chinese firms in existing investments or any transfer of investments by existing investors to Chinese firms will be hit.

Subhayan Chakraborty New Delhi

2 min read Last Updated : Apr 23 2020 | 12:43 PM IST

The latest changes to the Foreign Direct Investment (FDI) came into effect from Thursday midnight with all direct investment from China now requiring mandatory government approval.

The Department of Economic Affairs on Wednesday issued the updated the Foreign Exchange Management (Non-debt Instruments) (FEMA) Rules, 2019 which includes the latest FDI norms. The routine update to the FEMA rules mean that from now on, all incoming funds from China, as well as all nations with which India shares a land border - including Pakistan, Bangladesh, Bhutan, Nepal and Myanmar, will now face close inspection. Earlier, this was true for only Pakistan and

Topics : FDI foreign direct investments Fema Foreign Exchange Management Act Chinese investment

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