India May Simplify Rules For Non-China Hong Kong Investment: Report


The discussions are at a preliminary stage, said those knowledgeable about the matter. (Representative)

India could reduce control of transactions by Hong Kong-based investors as long as Chinese firms are not involved in the transactions, people knowledgeable said.

Proposals under consideration include requiring beneficial owners from countries that share a land border with India to seek government permission to acquire more than 10% of the shares in a local business. The discussions are at a preliminary stage, they said.

The government of Prime Minister Narendra Modi formalized the investment rules for neighboring countries in a bloody border dispute with China earlier this year. This resulted in over 140 proposals valued at more than $ 1.75 billion, including proposals from China and Hong Kong, which were delayed and made it difficult for investors to do business.

The framework is expected to expedite the approval process and provide much-needed clarity for private equity firms as well as hedge funds and companies seeking foreign capital as they struggle amid the economic shocks caused by the pandemic.


A call to the spokesman for the Department of Commerce and Industry was not answered immediately.

In the face of escalating border tensions with China – the worst military crisis since a war in 1962 – India has taken a series of retaliatory measures by banning Chinese apps, tightening visa requirements for Chinese nationals, and imposing restrictions on companies from countries that share a country Limit from the tender for government contracts.

All investment proposals are subject to Home Affairs Guidelines for Security Clearance and External Affairs Policies for Political Clearance.


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