India battles two Cs- Covid, China

India battles two Cs- Covid, China

Agency News

New Delhi, May 11 : A few days back India was confronting two Ps- pandemic and Pakistan. But now it’s facing two Cs-Corona and China. While in the 'case' of Pakistan, after two terror attacks in Jammu and Kashmir that claimed eight security personnel, Indian Army Chief General M M Naravane pledged 'precise response', 'action' is seen with regard to China's 'an-Indian' activities.

After two face-offs between Chinese and Indian troops in Ladakh and Sikkim over the last week which left several soldiers on both sides injured, India is considering reviewing foreign policy investments (FPIs) by China. After FDI, the Government is looking to clamp down on unbridled access to the Indian market by Chinese portfolio investors as it seeks to plug a possible loophole that investors from across the border can use to acquire shares in listed domestic companies.

According to sources, the department of economic affairs in the Finance Ministry is looking at options, including the possibility of mandating the 'approval route' for Chinese foreign portfolio investment (FPI) as well. FPI investors typically acquire smaller shares and keep churning their investment. The sources informed that the Government will initiate the steps in consultation with markets regulator SEBI.

In contrast, FDI is a more long-term and stable source of funding, which the Government had recently blocked for Chinese investors through the automatic route and mandated that direct investment from countries that share a border with India will only be permitted with prior Government approval. (UNI)