Stricter rules for companies with foreign ownership in offing

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, Reuters reported on Monday.

- FPJ News Service

The changes would redefine how India views foreign-owned companies, whether directly or indirectly, making them subject to 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. The Finance Ministry and the Reserve Bank of India, which issues the final rules, did not respond to requests for comment.

India is reviewing its foreign investment laws to simplify them and plug any loopholes.