What changed
Press Note 2 (2026 Series) amends Press Note 3 (2020). Government approval for investment linked to a country sharing a land border with India now turns on the beneficial owner, defined as a holding of more than 10% or control, as under the PMLA. The change eases the earlier position. It took effect through the FEMA (Non-debt Instruments) Amendment Rules, 2026.
Who is affected
Indian companies receiving foreign investment, and investors with owners in land-border countries.
Source
DPIIT, Press Note 2 (2026 Series); FEMA (Non-debt Instruments) Amendment Rules, 2026. The notification text is on the DPIIT website.
Effective: 2 May 2026 · Note published · Last reviewed 26 September 2026
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