NEW DELHI: Foreign direct investment (FDI) proposals with even minuscule Chinese holding will need government approval, with the Centre abandoning its earlier plan to set a floor for “significant beneficial ownership”.
In April, when the Cabinet approved the plan for screening of FDI proposals from countries bordering India, the government had discussed the option to set the threshold at either 10%, the provision in the Companies Act, or 25%, the prescription in the Prevention of Money Laundering Act.
But six months later, after multiple rounds of discussions, the view seems to have changed. “The (Cabinet) decision did not mention a minimum or maximum limit. So, even it is a small fraction, it will be covered,” a government official told TOI.