Amid escalating tensions involving India and China, the finance ministry has proposed putting restrictions on pension fund investments from any of India’s bordering countries.
Foreign financial commitment in pension money regulated by the Pension Fund Regulatory and Growth Authority (PFRDA) is capped at 49 per cent underneath the automated route.
According to a draft notification circulated for reviews on Friday, “A governing administration acceptance would be necessary for the investing entity or unique from any of the bordering countries together with China. The pertinent provisions of FDI plan issued from time to time would implement in all these scenarios.”
Any international investment decision from these international locations will be matter to acceptance from the governing administration.
The restriction would be relevant from the date of notification by the Govt of India.
Stakeholders can post their feedback on the draft inside 30 days, it added.
The improvements have been proposed in accordance with Division for Marketing of Field and Inside Trade (DPIIT) rules issued in April.
Currently, federal government authorization is required only for investments coming from Bangladesh and Pakistan.
The advancement will come at a time when Indian and Chinese armies are engaged in a standoff in Pangong Tso, Galwan Valley, Demchok and Daulat Beg Oldie in japanese Ladakh.
Twenty Indian Military staff, which include a colonel, have been killed in a clash with Chinese troops in the Galwan Valley on Monday evening, the most important armed service confrontation concerning the two sides in over five many years.
The scenario has stirred anti-China sentiments in the nation, with protestors and traders’ bodies calling for boycott of Chinese solutions.
(Apart from for the headline, this story has not been edited by NDTV workers and is printed from a syndicated feed.)