New Delhi: The Centre has put several Chinese companies with presence in India as well foreign firms with investments from across the border under scanner for alleged links with the People’s Liberation Army.
This is part of the Centre’s bid to prune China’s involvement in the Indian economy.
As part of the plan, fresh investments in these companies, including start-ups with Chinese funds, will be scrutinised in detail to ensure that they don’t pose any security threat, the Times of India reported.
Also, the Finance Ministry and SEBI are finalising the threshold for imposing checks on foreign institutional investor (FII) flows from across China, while seeking to ensure that the rules don’t affect market sentiment.
“The data are being looked at and the two agencies will decide the threshold and the system of reporting and monitoring,” the report quoted an unnamed government source as saying.