In order to curb "opportunistic takeovers or acquisitions
of Indian companies due to the COVID-19 pandemic", the Foreign
Exchange Management (Non-Debt Instruments) Rules, 2019 ("NDI
Rules") have been amended with effect from April 22, 2020, to
the effect that prior government approval is now required for
investment by entities situated in countries which share a land
border with India, i.e. Nepal, Pakistan, Bhutan, Bangladesh,
Myanmar, Afghanistan but most significantly, China
("Bordering Countries") or where the beneficial
owner of an investment into India is situated in or is a citizen of
one of the Bordering Countries ("FDI Amendment").
This amendment also extends to transfer of beneficial
ownership of any existing or future FDI (directly/indirectly) which
falls within the purview of the restriction.
