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Govt Plans Stricter Rules for Firms With Foreign Ownership

Mint Bangalore

|

May 20, 2025

The changes would make foreign-owned firms subject to FDI rules in matter of share transfers or restructurings

- Reuters

India is planning to tighten foreign ownership rules, two sources said, in a move that may have significant implications for businesses ranging from e-commerce to pharmaceuticals.

The changes would redefine how India views foreign-owned companies, whether directly or indirectly, making them subject to foreign direct investment (FDI) regulations when it comes to share transfers or restructurings.

The discussions are close to being finalized, the sources, both government officials said. They declined to be identified as the discussion was not public.

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