India may relax scrutiny of deals for non-Chinese investors from Hong Kong soon: Report

As per the proposals, beneficial owners from nations sharing a land border with India will have to mandatorily seek the Centre's approval to acquire over 10 percent stake in any local firm.

Moneycontrol News

December 21, 2020 / 05:37 PM IST

PM Narendra Modi with FM Nirmala Sitharaman (Image: PTI)

PM Narendra Modi-led Union government is considering proposals to reduce scrutiny of deals by Hong Kong-based investors if Chinese firms are not involved in the transaction.

As per the proposals under consideration, beneficial owners from nations sharing a land border with India will have to mandatorily seek the Centre's approval to acquire over 10 percent stake in any local firm, reported the Business Standard. However, they can only apply as long as Chinese firms aren’t involved in the transactions.

Locals, ITBP personnel push back Chinese soldiers in civilian clothes in eastern Ladakh: Report

Meanwhile, the Union government is also working on formalising investment rules for its neighbours, amid ongoing border standoff with China. Till now more than 140 proposals -- both from China and Hong Kong -- worth more than $1.75 billion have been delayed.

With the new framework under formulation, the government is expecting to speed up the permission regarding issues as firms in India are keenly waiting for clearances for foreign capital to overcome the economic loss due to the COVID-19 pandemic.

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