India Tightens FDI Rules With New FEMA Amendment, Beneficial Ownership Under Scrutiny

India’s May 2026 Foreign Exchange Management Act (FEMA) amendment has tightened the foreign direct investment framework by shifting focus from the source of capital to the identity of its controllers. Beneficial ownership, indirect stakes, and future changes in control are now under scrutiny, with Pakistan barred from sensitive sectors.India’s new FEMA rules mark a decisive shift in its FDI
India’s May 2026 Foreign Exchange Management Act (FEMA) amendment has tightened the foreign direct investment framework by shifting focus from the source of capital to the identity of its controllers. Beneficial ownership, indirect stakes, and future changes in control are now under scrutiny, with Pakistan barred from sensitive sectors.India’s new FEMA rules mark a decisive shift in its FDI
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