{"id":31302,"date":"2020-04-24T18:50:00","date_gmt":"2020-04-24T13:20:00","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=31302"},"modified":"2022-09-10T15:25:33","modified_gmt":"2022-09-10T09:55:33","slug":"foreign-direct-investment-amendment-in-light-of-hostile-takeovers","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/foreign-direct-investment-amendment-in-light-of-hostile-takeovers\/","title":{"rendered":"Foreign Direct Investment Amendment in Light of Hostile Takeovers"},"content":{"rendered":"<p class=\"has-drop-cap\">Over the years, India has relaxed the norms related to Foreign Direct Investment (FDI). Foreign Direct Investment is allowed in India from foreign institutions, investors, venture capitalists, and start-ups. <strong>These FDI norms in India were developed with the view of attracting more amount of <a href=\"https:\/\/enterslice.com\/learning\/types-foreign-investment-india\/\">foreign investment in India<\/a>. Investing in India will directly affect the economy, thus increasing the gross domestic product, technological advancements, and employment opportunities.<\/strong> Due to this, foreign direct investment is beneficial for an economy to sustain.&nbsp; Foreign direct investment in India has been amended many times in light of the changing regulation. <strong>The Foreign Investment Promotion Board (FIPB) has been repealed.<\/strong><\/p>\n\n\n\n<p><strong>The authorities that regulate FDI in India are the\nDIPP (Department for Industrial Policy and Promotion), RBI (Reserve Bank of\nIndia), FEMA (Foreign Exchange Management Act), and Ministry of External\nAffairs.<\/strong> All these authorities overlook the\ndevelopment of Foreign Direct Investment in India. Foreign Direct Investment in\nIndia can be got through the following routes:<\/p>\n\n\n\n<ol><li>Automatic Route<\/li><li>Approval Route<\/li><\/ol>\n\n\n\n<p>As the name signifies\nthe <strong>Automatic Route, it does not any\nform of prior approval for a foreign investment to flow into India.<\/strong> Most of\nthe investments which do not require any prior approval will come under this\nroute. <strong>Many international businesses,\nincluding partnerships, can invest in a capital instrument of an Indian Company\nthrough this route. There are no limits on the amount of investment that can be\nobtained through this route. 100% investment can be received in this route.<\/strong>\nUnder the <strong>Government Route, approval is\nrequired for an investment. There are specified areas in which government\napproval is required.<\/strong> The investment which is prohibited under Automatic Route\nwill require government approval for foreign investment. There are specific\nsectors which are not permitted from coming into India. There will be no form\nof the route for these forms of investments as they are not allowed.<\/p>\n\n\n\n<p><strong>Foreign Direct Investment is suitable for an economy.\nHowever, it would be a barrier to the development of the domestic economy, if\nthere is total control on a company\/ business by a foreign investor<\/strong>. <strong>This would lead to a change\nin control scenario where the foreign investor would get more than 51% control\nover the domestic entity<\/strong>. This will lead to antitrust and competition\nproblems<strong>. Apart from the above, there\nwould be no ability for domestic champions (Companies) to arise in the wake of\nthese events.<\/strong> This can be resolved if there is efficient regulatory\ncontrols and scrutiny over the amount of foreign direct investment in the\ncountry. <strong>The Foreign Direct Investment <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Amendment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An &amp;quot;amendment&amp;quot; refers to the formal change or correction of a legal document, often involving additions, variations, or deletions to address irregularities or clarify points in an agreement.(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/amendment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>amendment<\/a>\nwould be required in this situation.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>People&rsquo;s Bank of China (PBOC) Acquisition\nof Shares in Housing Development Finance Corporation (HDFC) &ndash; Foreign Direct\nInvestment Amendment<\/strong><\/h3>\n\n\n\n<p>Due to the\nCOVID-19 situation, the share valuations of domestic companies in India are at\na low level. This is due to the continued period of lockdown imposed by the\ngovernment. <strong>As the valuation of shares\nplunged, they have become targets for foreign investment<\/strong>. One of the moves\nthat triggered the government to consider the <strong>Foreign Direct Investment Amendment in India is due to the Bank of\nChina&rsquo;s (PBOC) increased its stake in HDFC<\/strong>.<strong> PBOC raised the stake in HDFC from below 1% to more than 1% in the\nwake of the COVID-19 pandemic. The Government of India feared that this form of\nthe takeover would be hostile to the domestic competition of the country.<\/strong>\nDue to this, the Foreign Direct Investment Amendment was brought out. <\/p>\n\n\n\n<p>This amendment\nwas brought out to the consolidated FDI policy, which was released by the\ngovernment in 2017. <strong>This move was\nbrought out to deter hostile\/ optimistic takeovers by foreign companies. The\nForeign Direct Investment Amendment was brought out in Paragraph 3.1.1 of the\nconsolidated FDI policy, and it included two sub-points 3.1.1(a) and 3.1.1(b).<\/strong>\nThe following were the amendments which were considered for foreign direct\ninvestment amendment:<\/p>\n\n\n\n<ul><li>Investment can be made by a <strong>Non-Resident in India subject to the\nprohibited sectors.<\/strong><\/li><li>An <strong>investor who is present in the country that shares the land borders\nwith India or is considered as a beneficial owner for such an investment that\nenters India, or invests in India.<\/strong><\/li><li>This form of investment is\nrequired through the <strong>approval route\/\ngovernment route.<\/strong> <\/li><li>Investment from <strong>Pakistan\/ Resident investing through\nPakistan was only through the approval route\/ government route<\/strong>. This would\nbe in specified sectors and would not allow the investment in <strong>defense, space, atomic energy, and\nprohibited sectors.<\/strong><\/li><li>Also, there are inclusions\nregarding any existing or future Foreign Direct Investment regarding the <strong>transfer of ownership to an entity in\nIndia; then, such transfer would also be subject to the approval of the\ngovernment<\/strong>. This would also go through the government route or the approval\nroute.<\/li><li>This means that any country\nthat is sharing a border with India would come under the purview of this\namendment. This amendment would apply to <strong>China,\nBangladesh, Afghanistan, Nepal, Bhutan, and Myanmar.<\/strong><\/li><li>This amendment\/ notification\nwould <strong>take effect on the date when FEMA\nspecifies such notification regarding Foreign Direct Investment Amendment.<\/strong><\/li><\/ul>\n\n\n\n<p>Through the\nForeign Direct Investment Amendment, the government has established a stringent\nregulatory framework to take control of the amount of foreign investment that\nflows from neighbouring countries. &nbsp;This\nForeign Direct Investment Amendment was required so that domestic entities do\nnot fall prey to foreign investors. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Foreign Direct Investment\nImpact on Chinese Investment in Fintech\/ <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;NBFC&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Non-Banking Financial Companies (NBFC) operate similarly to banks but do not possess the legal status of a bank. Registered under the Companies Act 2013 and governed by the RBI Act&amp;#039;s section(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/nbfc\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>NBFC<\/a> Sector<\/strong><\/h2>\n\n\n\n<p>The Government\nof India, in light of the above acquisitions and takeovers, has made efforts in\nconsidering regulating FDI by making it more stringent. Though this would be an\nadvantage for the domestic <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a>, it would have a damaging impact on the\namount of foreign direct investment that is brought into the country. <strong>The Foreign Direct Investment amendment can\nbe a boon to the domestic economy; however, it will be a bane to various digital\nand tech start-ups that significantly depend on the amount of foreign\ninvestment\/ angel investment from Chinese Companies.<\/strong> Many Fintech companies\nin India thrive on Chinese investments. <strong>China\nis one of the most significant contributors to foreign direct investment in\nIndia. Since the year 2014, this has been one of the most significant\ncontributors. <\/strong><\/p>\n\n\n\n<p><strong>In 2019, China contributed Foreign Direct Investment\namounting to more than $8 billion.<\/strong> This figure is\nmore than the overall contributions that are made by neighbouring countries of\nIndia.<strong> These Foreign Direct Investment\namendment guidelines require approval regarding all the forms of investments\nfrom the neighbouring country<\/strong>. This would have a significant impact on\nstart-up and technology firms, which largely depend on Chinese investment. <strong>Payment and Technology companies such as\nPaytm, Bigbasket, and Swiggy have been impacted drastically.<\/strong> These\ntechnology start-ups would not welcome foreign direct investment amendment.<\/p>\n\n\n\n<p>All forms of\ninvestment, whether it is a <strong>direct and\nindirect investment from China<\/strong>, would be affected by this amendment. This\nregulation would bring about various issues, such as the following: <\/p>\n\n\n\n<ul><li>Whether <strong>direct and indirect investments<\/strong> would be affected by this area?<\/li><li>What about transactions which have\nalready taken place<strong> and a report is\nrequired for these transactions<\/strong>?<\/li><li>What would be <strong>alternative sources of funds and\ninvestments<\/strong> for the tech start-ups?<\/li><li>Would <strong>previous deals which require further approval<\/strong> come under the ambit\nof this form of regulation?<\/li><\/ul>\n\n\n\n<p>With all the\nabove issues still, various start-ups have been drastically affected by this\nmove. There are multiple reasons for which a start-up depends on foreign\ninvestment. One of the primary reasons is securing the investment. <strong>Obtaining large amounts of Chinese\ninvestment is quite clear and straightforward. This investment was previously\nunder the Automatic Route, which made the investment easier to secure. Now that\nthis has been amended, Chinese firms would think twice to invest in India\nbecause of the extra compliance and consent under the Government Route.&nbsp; <\/strong><\/p>\n\n\n\n<p>As Foreign\nInvestment from China can only be carried out through the Government route, it\nwould be a long process of securing the investment approval from various\nregulatory bodies. <strong>The government has\nnot prohibited foreign investment from China, but it has increased the level of\nscrutiny required when an investor from China wants to invest in India.<\/strong>\nFuture investments from these companies in India would face additional\nscrutiny.<\/p>\n\n\n\n<p><strong>Take one of the largest online groceries in India-\nBigbasket (BB). Due to the lockdown imposed by the government, BB has been\nstruggling to meet operational and business expenses<\/strong>. In a series <strong>round funding\nby e-commerce giant in China Alibaba, they received a $50 million investment to\nhelp their operations continue<\/strong>. Because of the Foreign Direct Investment\namendment, it would disrupt their operations. Due to this, future dealings and\nthe present dealings in the value of the investment would be disrupted. <strong>The company would have to look into\nalternative sources of investment to reduce the damage caused to it.<\/strong><\/p>\n\n\n\n<p><strong>Alibaba has also made a significant amount of\ninvestment through various funding rounds in Payment Technology Company Paytm<\/strong>. Owing to the amount of control over the payment technology\ncompany, the Foreign Direct Investment amendment would be a deterrent to further\nforeign capital from Chinese Investors and Venture Capitalists. <strong>This would be a significant blow on Indian\ncompanies and Chinese Investors<\/strong>. <strong>Chinese\nInvestors would have an added layer of regulation to circumvent for investing\nin India.&nbsp; Indian Companies would have to\nnegotiate deals with Chinese Investors to secure investment through the\ngovernment route.<\/strong> <\/p>\n\n\n\n<p><strong><em>Fintech\/Start-Ups can overcome this by considering the following:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Consider <strong>alternative ways<\/strong> for investment in the company.<\/li><li>Come to <strong>negotiable terms when agreeing with further investment<\/strong> from the\nChinese company.<\/li><li>Convince Foreign <strong>Investors who share land borders with India<\/strong>\nto invest through the government route.<\/li><\/ul>\n\n\n\n<p>Though the\nForeign Direct Investment amendment is considered a boon to protect domestic competition\nin the market, start-ups which significantly depend on Chinese investments,\nwould consider the Foreign Direct Investment Amendment as a bane.<\/p>\n\n\n\n<div class=\"read\"><p><b>Read, Also:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/government-approval-under-foreign-direct-investment-fdi-in-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Government Approval under Foreign Direct Investment (FDI) In India<\/a><\/mark>.<\/p><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Route Approval\nProcess- Foreign Direct Investment Amendment<\/strong><\/h2>\n\n\n\n<p>Foreign Direct\nInvestment, which is made through the above process, requires prior approval.\nThe process by which Foreign Direct Investment is carried out is as follows:<\/p>\n\n\n\n<ul><li>The prescribed procedure for making an application for FDI is the <strong>Standard Operating Procedure (SOP). <\/strong><em>This procedure can be found here:<\/em><\/li><\/ul>\n\n\n<a href=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/SOP.pdf\" class=\"pdfemb-viewer\" style=\"width: 767px; \" data-width=\"767\" data-height=\"max\" data-toolbar=\"bottom\" data-toolbar-fixed=\"on\">SOP<br><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p>Source: <a href=\"https:\/\/fifp.gov.in\/Forms\/SOP.pdf\">See here<\/a><\/p>\n\n\n\n<ul><li>The application, as well as the approval form, is sent <strong>through the DIPP to the Reserve Bank of India (RBI) <\/strong>to receive any form of comments regarding compliances and approval which have to be obtained as per the laws related to <strong>Foreign Exchange Management Act (FEMA).<\/strong><\/li><li>It will take <strong>two business days for RBI to provide comments regarding the form, whether it complies with the laws related to FEMA<\/strong>.&nbsp; For further clarifications, the proposals will be submitted to the <strong>Department of Revenue and the Ministry of External Affairs<\/strong>.<\/li><li>The letters for approval regarding foreign investment will be sent in two weeks.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Penalty for Non- Compliance of\nForeign Direct Investment Amendment<\/strong><\/h2>\n\n\n\n<p>The penalties\nimposed for Non-Compliance with the Foreign Direct Investment amendment would\nbe according to the <strong>Consolidated FDI\nPolicy<\/strong>. Until further notification is issued regarding the Foreign Direct\nInvestment Amendment, the following would be the penalties for Non-Compliance:<\/p>\n\n\n\n<ul><li><strong>If an individual violates the norms regarding Foreign Direct\nInvestment- then the individual would have to pay three times the amount of a\nfine of two lakhs. If there is a further breach of the rules, then daily penalties\nwould be imposed.<\/strong><\/li><li><strong>If a company violates the norms regarding Foreign Direct Investment\n&ndash; then every individual would be liable who has actual knowledge of the\ninfringement. They would be punishable under Civil and Criminal law. <\/strong><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Pending FDI Reporting- Compliance\nRelated To Funds Credited <\/strong><\/h2>\n\n\n\n<p>The Government\nof India has brought out the Foreign Direct Investment amendment to present and\nfuture transactions related to foreign direct investment. <strong>For previous deals\/ transactions, the government may consider bringing\nout further approval when it comes to pending FDI reporting norms.&nbsp; <\/strong>According to the <strong>Foreign Direct Investment amendment, existing and future transactions\nwould also require approval under the government route.<\/strong> Therefore,\ntransactions that were under the automatic route may not require approval under\nthis new regime.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Whether\nApproval Required for Previously Raised Investment Which Has To Be Repatriated\nBack To Investor<\/strong><\/h3>\n\n\n\n<p>According to the\nForeign Direct Investment amendment, any form of present and future investment\nhas to get approval under the government\/approval route. <strong>Therefore, previously raised investment that would have to be\nrepatriated to the investor may not require approval from the government.\nHowever, the government may bring out certain clarifications regarding this in\nsubsequent amendments.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Whether External Commercial Borrowings or Debt Fund Is\nAllowed By an Entity Directly or Indirectly Owned By a Chinese Resident \/ Chinese\nCompany<\/strong><\/h3>\n\n\n\n<p><strong>External Commercial Borrowings is a form of foreign\ninvestment which is used by Indian Companies.<\/strong>\nTherefore External commercial borrowings come under the purview of Foreign\nDirect Investment. Thereby going by the Foreign Direct Investment amendment,\nthis would require government approval.&nbsp; <strong>Investment by a Chinese National\/ Entity in\na fund, even if the investment is made through a British Company, then there\nwill be more compliance related to the requirement of Government Route\/\nApproval Route.<\/strong> Therefore direct and indirect investments would be subject\nto this form of regulation if made by a neighbouring country which shares\nborders with India. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Reasons for Government to Bring\nOut the Foreign Direct Investment Amendment<\/strong><\/h2>\n\n\n\n<ul><li>To protect the domestic market\nfrom hostile takeovers;<\/li><li>To preserve healthy competition\nin the domestic market;<\/li><li>To ensure that an Indian entity\ndoes not lose share control over the company; and<\/li><li>To ensure that authorities such\nas the RBI, SEBI, Competition Commission of India (CCI), DIPP have control over\nthe situation.<\/li><\/ul>\n\n\n\n<p>Foreign Direct\ninvestment amendment is to not prohibit foreign investment. <strong>This regulation just provides an added\nlayer of protection so that the government can review and monitor the\nsituation.<\/strong><\/p>\n\n\n\n<p>In the wake of\nthe economic crisis, the government has brought out these measures to ensure\nthat the Indian economy is stable and companies are not subject to dominance\nfrom a foreign investor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Global Scenario: Attitude of\nUSA, UK and Europe to accept FDI from China after COVID-19<\/strong><\/h2>\n\n\n\n<p><strong>India is not the only country that has taken the\nnationalistic approach through the foreign direct investment amendment.<\/strong> The current situation, which is caused by the COVID-19, has made\nother economies take a nationalistic approach towards hostile takeovers. <strong>Western economies have taken a similar\napproach to tackle the amount of foreign investment in their economies.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>USA<\/strong><\/h3>\n\n\n\n<p>In the USA, the <strong>Committee on Foreign Investment in the\nUnited States (CFIUS) continues to monitor foreign investment, which is made by\ncountries such as China. <\/strong>When it comes to foreign investment in the USA\nfrom China, the CFIUS will be more proactive for investment that is made in <strong>sensitive areas such as pharmaceutical\nappliances and medical appliances<\/strong>. <\/p>\n\n\n\n<p>The CFIUS\ncontinues to still evaluate the position and monitor transactions such as\nforeign investment from China. <strong>This\nwould be mainly in the situation where Chinese companies would want to invest\nin Pharmaceutical companies in the USA<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>European Union (EU)<\/strong><\/h2>\n\n\n\n<p><strong>The European Union (EU) has provided guidance and\ndirective for member states to consider having strict Foreign Direct Investment\nLaws related to their own countries<\/strong>. &nbsp;The European Union considered the <strong>Treaty of Functioning of the European Union\n(TFEU)<\/strong> <strong>in recommending member states\nof the EU to have stringent screening policies regarding Foreign Direct\nInvestments from China. <\/strong>The EU considered member states to ensure that they\nhave proper rules related to the governance of Foreign Direct Investment. <strong>One of the examples for the imposition of\nlaw associated with Foreign Investment was carried out by Spain, which invoked\nlegislation to make stringent regulations for the control of the amount of\nforeign investment into the country.<\/strong> <\/p>\n\n\n\n<p><strong>Because of the above, it is understood that not only\nIndia considered Foreign Direct Investment Amendment. This type of strategy has\nbeen reviewed and developed by other western economies.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Enterslice View<\/strong><\/h3>\n\n\n\n<p><strong>India has taken a drastic step to curb the amount of\nforeign investment that flows into the country from countries that share\nborders. In the current situation, this move is beneficial amidst the COVID-19 pandemic.<\/strong> Foreign Direct Investment amendment has allowed domestic companies\nto have a healthy competition with each other. This is beneficial for economic\ndevelopment. <strong>Though the Chinese\ngovernment has considered the Foreign Direct Investment Amendment as\ndiscriminatory to the standards set by the World Trade Organisation (WTO) and\ngoes against the G20 values, however, this step is carried out by other western\neconomies that are part of the WTO.<\/strong> With the above view, this amendment is\nbeneficial, considering the current economic scenario of the country.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion- Foreign Direct\nInvestment Amendment<\/strong><\/h3>\n\n\n\n<p><strong>The Government of India has brought out the Foreign\nDirect Investment Amendment to deter hostile takeovers from foreign competitors.\nThis was after PBOC acquired more than a 1% stake in HDFC.<\/strong> The main features of the foreign direct investment amendment are\nthe increase in the number of countries to which the foreign direct investment\nrestriction applies. <strong>Any form of foreign\ninvestment that flows from neighbouring countries which share borders with\nIndia is subject to the government\/approval route.<\/strong> This is a good move in\nlight of the economic situation. However, this would be a drawback for start-ups\nand technology firms that significantly depend on foreign investment from\nChina. <strong>In the current economic stage,\nhaving the protectionist theory to consider the requirements of the country is\nbeneficial to the economy.<\/strong> <strong>This view\nhas also been adopted by western countries, which are a positive move to reduce\nforeign investment from China. Because of this, the foreign direct investment\namendment is beneficial for India.<\/strong><\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/foreign-direct-investment-norm\/\" target=\"_blank\" rel=\"noopener noreferrer\">FDI Norms in Loan Company and Compliance under FEMA<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Over the years, India has relaxed the norms related to Foreign Direct Investment (FDI). Foreign Direct Investment is allowed in India from foreign institutions, investors, venture capitalists, and start-ups. These FDI norms in India were developed with the view of attracting more amount of foreign investment in India. Investing in India will directly affect the [&hellip;]<\/p>\n","protected":false},"author":37,"featured_media":31307,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2849,2218,1599],"tags":[2942],"acf":{"service_id":"209"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Foreign Direct Investment (FDI) Amendment in Light of Hostile Takeovers<\/title>\n<meta name=\"description\" content=\"Foreign Direct Investment Amendment -Foreign Direct Investment is allowed in India from foreign institutions, investors, venture capitalists, and start-ups.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/foreign-direct-investment-amendment-in-light-of-hostile-takeovers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Foreign Direct Investment (FDI) Amendment in Light of Hostile Takeovers\" \/>\n<meta property=\"og:description\" content=\"Foreign Direct Investment Amendment -Foreign Direct Investment is allowed in India from foreign institutions, investors, venture capitalists, and start-ups.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/foreign-direct-investment-amendment-in-light-of-hostile-takeovers\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-24T13:20:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-09-10T09:55:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Foreign-Direct-Investment-Amendment-in-Light-of-Hostile-Takeovers.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Varun Hariharan","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/03\/Image.png","authorDescription":"Varun Hariharan has completed the Legal Practice Course from BPP Law School, Manchester. He has a Masters in Commercial and Corporate Law from the Queen Mary University of London and LLB Honours from Bangor University, UK.  He specialises in law related to corporate, artificial intelligence and technology law.","postViews":513,"readingTime":10,"nextPost":{"id":31317,"slug":"share-purchase-agreement-importance-and-key-contents-in-drafting"},"prevPost":{"id":31289,"slug":"corporate-compliance-calendar-for-april-2020"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/04\/Foreign-Direct-Investment-Amendment-in-Light-of-Hostile-Takeovers.jpg","postTerms":"Covid-19","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/31302"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/37"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=31302"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/31302\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/31307"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=31302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=31302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=31302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}