In order to secure the opportunities takeover of Indian companies in the current situation arising out of COVID-19, the Government of India has revised the eligibility of foreign investors, with respect to foreign investment, vide a press note dated 17th April, 2020.
Foreign investment in India from a foreign entity incorporated in or where the beneficial owner of such an investment into India is situated in/ is a citizen of any such country which shares the border with India can now be made only through the Government approval route. Earlier, the said condition was made for the residents and entities incorporated in/ citizen of Bangladesh and Pakistan. Now the aforesaid restriction has been extended to Countries like China, Nepal, Burma, Myanmar, Bhutan and Afghanistan
Further, in case of direct/ indirect transfer of ownership of any existing/ prospective FDI to an foreign entity/ beneficial owner situated in a country which is sharing border with India, then such subsequent change in the beneficial owner shall also require prior approval of Government of India.