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Press Note 2 (2026 Series) Clarifies LBC Investment Rules – Focus on Beneficial Ownership March 19, 2026
Published in: Alerts
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The Government of India has revised the FDI framework for investments from countries sharing a land border with India (LBCs) through Press Note 2 (2026 Series), providing clarity on the determination of “beneficial ownership” and when prior government approval is required.
The amendments align the definition of beneficial ownership with the Prevention of Money-laundering framework, introducing a threshold and control-based test. Investments not meeting these conditions will not require prior approval but will remain subject to reporting requirements.
The Union Cabinet has also approved a 60-day timeline for expedited approvals in select manufacturing sectors, indicating a shift towards balancing regulatory oversight with ease of doing business.
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