wordpress blog stats
Connect with us

Hi, what are you looking for?

Chinese nationals need government nod before joining any Indian board

Chinese nationals need security clearance from the governement if they want to be appointed as a director on the board of an Indian company.

board meeting empty chairs

What's the news? Starting June 1, any national from a country that shares a land border with India must seek security clearance from the Ministry of Home Affairs if they wish to be appointed as a director on the board of an Indian company, a notification issued by the Ministry of Corporate Affairs stated. Why is this important? While the notification appears to target all neighbours that share a land border with India—China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal and Bangladesh—it is, in practice, largely going to affect Chinese nationals the most because the country has far more investments in Indian companies than the other neighbours. This requirement is in line with Press Note 3 of 2020, which mandates government approval for foreign investment coming from countries sharing land borders with India. Why was this law introduced? According to Economic Times, this requirement has been imposed after it was found that Chinese and Hong Kong investors were circumventing the restrictions imposed in 2020 on foreign investments from neighbouring countries. "In some instances, it was found that a Chinese company would create a US or Cayman Islands-based entity through which it routed the investment without any restrictions. It would subsequently appoint senior Chinese executives as directors to exercise control," the report explained. Speaking to Hindu Business Line, Atul Pandey, Partner, Khaitan & Co said that the Ministry of Corporate Affairs has recently investigated multiple complaints against many companies with Chinese directors, hinting at another possible reason for this new requirement. Why was the 2020 law introduced? The 2020 law was introduced…

Please subscribe/login to read the full story.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

New bill narrows focus over predecessors that went heavy on data sovereignty, localisation and compliance. What explains this change?

News

Studying the 'community' supporting the late Sushant Singh Rajput (SSR) shows how Twitter was gamed through organized engagement

News

Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create a repository of non-personal data?

News

A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'

News

India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ