Govt scrutiny on new portfolio investors from China, Hong Kong: Report

India has drafted rules proposing tighter scrutiny of new Foreign Portfolio Investors (FPIs) from China and Hong Kong, three government sources told Reuters. The discussions come weeks after the central government said it will screen all foreign direct investment (FDI) from countries with which it shares a land border, a move it said was aimed at staving off takeovers when asset prices are depressed during the coronavirus pandemic.

The Chinese government described the policy as discriminatory. FDIs are longer-term direct investments.

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