India to Tighten Foreign Ownership Rules for Companies

India is planning to change the rules for companies that have foreign owners.

The goal is to make sure foreign investors follow the same rules as everyone else, especially regarding money coming into the country.

This could affect businesses like online stores and drug companies.

India will create a new category for companies controlled by people outside India.

These companies, even if they have indirect foreign investment, will need to follow the rules for foreign investment when they change how they are structured or who owns them.

Any transfer of shares will need to be reported and follow investment limits.

The changes are intended to stop foreign investors from avoiding Indian investment rules.