International Relations GS 2 In the news 4 times

Beneficial Ownership

A New Definitional Anchor

Press Note 2 of 2026 introduces, for the first time in India's FDI policy, a formal definition of "beneficial ownership" aligned with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. This shifts the restriction from a jurisdiction-based test (where is the investor registered?) to a control-and-ownership test (who ultimately controls the investment?). The 10% non-controlling threshold is assessed on beneficial ownership, not just nominal shareholding.

Key details

Beneficial ownership: Based on PMLA Rules 2005 definition
Threshold for automatic route: Up to 10% beneficial ownership from LBC, with no controlling interest
Mandatory reporting: To DPIIT in the format prescribed under the updated SOP

In the news

● Tracked since March 11, 2026 · last seen May 05, 2026 · updates as the daily brief publishes

05 May '26

India Fast-Tracks FDI Clearances in 40 Manufacturing Sub-Sectors for Land-Bordering Countries

Economics

02 May '26

DEA Amends FEMA Rules: Beneficial Ownership Standard Replaces Blanket China-Origin Bar for FDI

Economics

27 Mar '26

Press Note 3 Amendment: Beneficial Ownership Definition for Land Border FDI

Economics

11 Mar '26