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Sunday, April 19, 2020

Govt action against CHINA investment

China’s central bank has bought 1.01 per cent stake in HDFC

According to the shareholding disclosures for the March quarter, People’s Bank of China held 1.75 crore shares of India’s biggest housing mortgage lender.


Action

The government on Saturday made its prior approval mandatory or foreign investments from countries that share land border with India to curb "opportunistic takeovers" of domestic firms following the Covid-19 pandemic, a move which will restrict FDI from China.

Countries which shares land borders with India are China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan

"An entity of a country, which shares land border with India is situated in or is a citizen of any such country, can invest only under the government route," according to a press note issued by the Department for promotion of Industry and Internal Trade (DPIIT).