India announces new FDI rules to avoid hostile takeovers during COVID-19 pandemic

The Indian government announced changes in the foreign direct investment (FDI) rules to curb ‘opportunistic takeovers/acquisitions’ from any entity that shares a land border with India during the COVID-19 pandemic. Although China is not mentioned by name, it is widely seen as a move to prevent takeovers by Chinese firms. Under the new rule, such entities would be required to obtain government approval for any investment or transfer of ownership of Indian companies via FDI investments.