FDI policy: 'Bringing clarity to press-note 3 is a step in right direction'

Press-note 3 requires that all investments from entities will have to be made under the 'approval route' and will require security clearance

Recent media reports suggest that the Department for Promotion of Industry and Internal Trade (DPIIT) is working on bringing clarity to the provisions of the press-note 3, an amendment to the FDI Policy made in April 2020.  Nearly two years after the press-note 3 was enacted, it’s indeed a step in the right direction to introspect and resolve the unintended impact of the press-note. 

The widely known press-note 3 (2020 series) was brought during the initial days of the pandemic in April 2020 – and as an immediate reaction to the concerns of Indian companies being vulnerable to opportunistic takeovers