Did You Know? · Corporate & Commercial Contracts
Do you know the land-border FDI approval rule was eased in March 2026 - but only up to a point?
Non-controlling investments up to 10% by beneficially owned investors can now use the automatic route; beyond that, approval is still mandatory.
Press Note 3 of 2020 required prior Central Government approval for any investment - regardless of sector or size - from an entity of a country sharing a land border with India, or where the beneficial owner is situated in or is a citizen of such a country. The Union Cabinet recalibrated this on 10 March 2026: non-controlling investments up to 10%, from an investor merely beneficially owned out of a bordering country, can now go through the automatic route (subject to sectoral caps). Cross 10%, acquire control, or have the investing entity itself incorporated in the bordering country, and government approval is still mandatory.