PE firms express concerns over new FDI rules, say investments will get hit

Urge govt not to slap the rule on PE funds that have already raised money

Private equity (PE) and venture capital (VC) funds operating in India have expressed serious concerns over the modification in foreign direct investment (FDI) norms, which brings all foreign investments from China under government scrutiny. They point out this would seriously impact their inflows into the country. 

Under the new rules, any ‘entity’ or ‘beneficial owner’ or ‘citizen’ of a country (read China) having borders with India, who wants to invest in India, has to go through the government route and cannot avail of the automatic route allowed to others for up to 100 per cent investment in certain sectors or