NEW DELHI: India has drafted rules proposing tighter scrutiny of new Foreign Portfolio Investors from China and Hong Kong, three government sources told Reuters, its latest effort to check foreign inflows during the coronavirus pandemic.
Two senior government sources said India could set up a body to scrutinise new FPI registrants from countries such as China, and the rules will also apply to Hong Kong, a special administrative region from where substantial Chinese investments are routed. The two sources added New Delhi is also considering the possibility of mandating a so-called “security clearance” from India’s home ministry for new FPI registrants from these nations.
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