Name: India toughens rules on investments from neighbours, seen aimed at China
Brand: reuters.com
SKU: reuters-com-794
Availability: OnlineOnly

critic

India toughens rules on investments from neighbours, seen aimed at China

preview

By , NEW DELHI (Reuters) - India has stepped up scrutiny of investments from companies based in neighbouring countries, in what is widely seen as a move to stave off takeovers by Chinese firms during the coronavirus outbreak.India’s trade ministry said in a notification dated April 17 the changes to federal rules on investment were meant to curb “opportunistic takeovers/acquisitions”. It did not mention China.Investments from an entity in a country that shares a land border with India will require government approval, it said, meaning they can not go through a so-called automatic route.“These times should not be used by other countries to take over our companies,” a senior government official told Reuters.Similar restrictions are already in place for Bangladesh and Pakistan. But up to now, they have not applied to China and India’s other neighbours including Bhutan, Afghanistan, Myanmar and Nepal.“This will certainly impact sentiment among Chinese investors. However, greenfield investments will not be impacted,” said Santosh Pai, a partner at Indian law firm Link Legal that advises several Chinese companies.Australia has also said all foreign investment proposals will be assessed by a review board during the coronavirus crisis to prevent a fire sale of distressed corporate assets. Germany has taken similar measures.A February report by research group Gateway House said Chinese foreign direct investment into India stood at $6.2 billion.Delano Furtado, a partner with law firm Trilegal, said the notification may also impact Chinese companies with existing investments in the country.“Any follow-on investments in those entities may now require approvals,” he said.India’s notification also said government approval would also be needed to change the ownership of an Indian entity that had existing foreign investment.Editing by Euan Rocha and Andrew HeavensOur Standards:

By , NEW DELHI (Reuters) - India has stepped up scrutiny of investments from companies based in neighbouring countries, in what is widely seen as a move to stave off takeovers by Chinese firms during the coronavirus outbreak.India’s trade ministry said in a notification dated April 17 the changes to federal rules on investment were meant to curb “opportunistic takeovers/acquisitions”. It did not mention China.Investments from an entity in a country that shares a land border with India will require government approval, it said, meaning they can not go through a so-called automatic...

public

Aftab Ahmed

Aditya Kalra

Top and breaking news, pictures and videos from Reuters. For more breaking business news, follow @ReutersBiz.

reuters.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

India toughens rules on investments from neighbours, seen aimed at China

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS