Upset over Chinese companies shopping in the Indian stock markets, the government dropped the foreign direct investments (FDI) coming from its neighbours from the automatic approval, amending the rules that they would require prior government approval.
So far the restriction applied to the residents of Pakistan and Bangladesh, but it has been extended to China without naming it in the order issued by the Ministry of Commerce and Industry on Saturday.
It says: "An entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route."
