The Union home ministry is likely to stall security clearance to a clutch of Chinese companies seeking to invest in India, according to officials close to the development.
Recently, India tightened the FDI policy for neighboring nations, with a focus on China. This also applies to transactions where the beneficial owner of the investment is from China. The amendments were made to curb opportunistic takeovers or acquisitions of Indian companies due to Covid-19.
The Ministry of Home Affairs (MHA) received more than 20 proposals for foreign direct investment (FDI), including from China and Hong Kong, requiring security clearance between April and May.
“We are vetting some of these proposals which have come from various sectors. One of the applications is from a well-known start-up,” an official said.
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