PE firms express concerns over new FDI rules, say investments will get hit.

by mehekkaoberoi
  • Private equity and venture capital funds operating in India have expressed serious concerns over the modification in foreign direct investment (FDI) norms, which brings all foreign investments from China under government scrutiny.
  • They point out that this would seriously impact their inflows in the country.
  • Under the new rules, any ‘entity’ or ‘beneficial owner’ or ‘citizen’ of a country (read China) with borders with India, who wants to invest in India, has to go through the government route and cannot avail the automatic route allowed to others.
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