Considering the Covid-19 pandemic, the Government of India vide its Press Note No. 3 (2020 Series) issued by Department of Promotion of Industry and Internal Trade, has proposed to curb the opportunistic takeover/acquisition of Indian companies, by restricting investments in Indian companies from citizens or entities from countries sharing land borders with India only after obtaining prior Government approval. Before this Press Note, such territory-based restriction of requiring Government approval was only applicable to a citizen or entity investing from Pakistan or Bangladesh. Although the Press Note does not explicitly name any country, the intention of the Government to regulate and restrict investments from China is evident. The impact and our views on the Press Note is provided in our article below authored by Santosh Pai (Partner and Head - China Desk) and Yosham Vardhan (Associate Partner).
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