India to notify eased FDI norms under FEMA, allows firms with up to 10% China stake

The decision to ease foreign direct investment norms for overseas companies with up to 10 per cent stake in Chinese companies will be notified soon under the FEMA law, a senior government official said on Thursday. After that, the changes will come into effect. In March, the Union Cabinet approved amendments in the press note (PN) 3 of 2020 under which foreign companies having a Chinese shareholding of up to 10 per cent will be eligible to invest in India under the automatic route across sectors. However, the relaxed FDI rules will not apply to entities registered in China/Hong Kong…