The government has recently issued a press note, whereby investment from neighboring countries with which India shares a border has been restricted and any future investment is permissible only through the government route. This measure has been taken by the government due to the current Covid-19 pandemic.
As per the aforesaid amendment, any investment being made from Bangladesh, China, Pakistan, Nepal, Myanmar, Bhutan and Afghanistan (‘Neighboring Countries’) or where the beneficial owner of an investment into India is situated in or is a citizen of any of the aforesaid neighboring countries, shall require prior approval of the Government regardless of the sector/activities in which investment is being made.
In this regard, we are pleased to share our enclosed newsflash wherein we have analysed the above aspect and other implications of the press note. It is expected that the RBI would notification in this respect, from which date this amendment would be effective.