Takeover fears: nuanced method on Chinese investments

The federal government’s decision to ban foreign direct financial investments (FDI) through the automatic path from neighbouring nations that share a land border with India has actually raised eyebrows. This is primarily because the relocation is viewed as aimed at Chinese financiers who might exploit cheap valuations in the depressed financial conditions post-lockdown to pick up equity interest in choose companies. India is not alone in this worry of “opportunistic takeovers”, as Press Note 3(2020 Series) of the Commerce Ministry described it. Italy, Spain, France and Australia have actually already taken similar action to secure their services from foreign (read Chinese) investors fishing for distressed entities in need of cash in the post-CO