BENGALURU: The government on Wednesday amended the Foreign Exchange Management Act (FEMA) to curb investment from countries such as China and Pakistan.
With the new FEMA amendment, any Indian startup looking to raise money from funds or individual investors in neighboring countries such as China will now have to take additional approvals from the nodal ministry, said lawyers and experts.
The fresh FEMA notification comes a week after the Indian government made changes in its foreign direct investment (FDI) policy by mandating government clearance for all foreign inflows from countries with which it shares land borders.