FDI Update: Foreign investments into India from countries with which India shares borders will require Government approval.

The Government of India has issued Press Note 3 (2020 Series) announcing the following changes in the existing Foreign Direct Investment Policy of India 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. In the event of the transfer of ownership of any existing or future foreign direct investment in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the above para, such subsequent change in beneficial ownership will also require Government approval. The Press Note states that the above decision will take effect from the date of FEMA notification. This update has been contributed by Adity Chaudhury (Partner).