Press Note 3 Of 2020: A Fifth Anniversary Edition

For the last five years, Press Note 3 (or PN3, as it is more commonly known) introduced by the Government of India in April 2020 to regulate investments from land bordering nations has been at the center of a large majority of Indian deal making. The expansive scope of the press note – which requires that investments from and acquisitions by an entity based in a country which shares a land border with India, or where the "beneficial owner" of the investment is situated in a country which shares a land border with India, will be subject to prior Government approval – meant than both direct investments into India as well as global transactions with an India element, controlling as well as minority investments, and fresh investments as well as secondary acquisitions, were subject to the PN3 test (please refer to our earlier note, Press Note 3 of 2020: A First Anniversary Edition, which analyses the regime in detail).