In order to curb opportunistic takeovers/acquisitions of Indian companies due to the COVID-19 pandemic, Government amended the FDI policy vide Press Note 3(2020) dated 17.04.2020 whereby an entity of a country, sharing 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. Further, in the event of the transfer of ownership of any existing or future FDI in an entity in India, directly or indirectly, resulting in the beneficial ownership falling within the restriction/purview of the said policy amendment, such subsequent change in beneficial ownership will also require Government approval. Press Note 3 (2020) was enforced through Foreign Exchange Management (Non-Debt Instruments) Amendment Rules 2020 dated 22.4.2020.

In line with the objective to ensure a safe, trustworthy and accountable Internet for all its users, the Government has so far blocked 320 mobile applications under the provision of section 69A of the Information Technology (IT) Act, 2000. These mobile applications were blocked in the interest of sovereignty, integrity, defence and security of the State. In February 2022, 49 apps were re-blocked after they were found to have been re-launched after rebranding of earlier blocked apps.

China stands at 20^th position with only 0.43% share (US$ 2.45 billion) in total FDI equity inflow reported in India during the period of April, 2000 to December, 2021.

As per Para 5.2(i) of the FDI Policy, the onus of compliance of provisions of the FDI Policy are on the investee company. Further, as regards to violation of FDI regulations, Para 3 of Annexure 5 of the FDI Policy provides that FDI is a capital account transaction and thus any violation of FDI regulations are covered by the penal provisions of the FEMA. Reserve Bank of India administers the FEMA and Directorate of Enforcement under the Ministry of Finance is the authority for the enforcement of FEMA and takes up investigation in cases of contravention of FEMA.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Shri Som Parkash, in a written reply in the Lok Sabha today.

 

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