Govt likely to notify FEMA changes for foreign firms with up to 10% Chinese stake

The government is set to soon notify changes under the Foreign Exchange Management Act (FEMA) that will ease foreign direct investment (FDI) norms for overseas companies with up to 10 per cent Chinese shareholding, a senior official told news agency PTI on Thursday. Once notified by the Department of Economic Affairs (DEA), the revised framework will come into effect. The Union Cabinet had in March approved amendments to Press Note 3 of 2020, allowing foreign companies with Chinese ownership of up to 10 per cent to invest in India through the automatic route across sectors. However, the relaxation will not…