Insights
COVID-19 updates: FDI Policy on curbing acquisitions of Indian companies
April 19, 2020FDI Policy amended to curb acquisitions of Indian cos due to COVID-19 – Press Note 3 of 2020
On April 18, 2020, the Central Government amended the Consolidated FDI Policy 2017 (“FDI Policy”), with the stated view of curbing “opportunistic takeovers/acquisitions of Indian companies” due to COVID-19. Press Note 3 of 2020 (“PN 3”) issued by DPIIT amends paragraph 3.1.1 of the FDI Policy, to introduce the following two new restrictions (while leaving prior restrictions intact):
1. An entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.
