Finance Minister of India Nirmala Sitharaman has suggested restricting foreign investment from any of India’s neighboring countries in pension funds amid the growing tension with China.
As of now, the foreign investment in pension reserves is managed by the Pension Fund Regulatory and Development Authority (PFRDA) and is topped at 49% with the programmed course.
As per a notice government’s endorsement will be required for the contributing element or individual from any of the neighboring nations to put resources into India.. The provisions of FDI policy that are relevant will apply to all such cases.
Any type of foreign investment from the neighboring countries of India will require the government’s approval. The government of India will announce the date from which these restrictions will come into place.
At present only the foreign investment coming in from Pakistan and Bangladesh require the government’s approval.