Beneficial ownership threshold under FEMA could be kept open-ended

Issue deferred as ministries fail to reach consensus over threshold

The definition of “beneficial ownership” for Chinese foreign direct investment (FDI) in India might be kept open-ended in view of no consensus on this.
 
Policymakers are of the opinion that placing a threshold on investment would leave the field open for overseas investors, particularly from China, to alter their investment structures, short-circuiting the FDI approval process.
 
“Several rounds of discussion and deliberation have been done. The ministries, inc­luding the Ministries of Fin­ance and Commerce, have fai­led to reach a consensus on setting a cap on investment from seven neighbouring nations, including China. It is also being argued that