29 FDI investments worth ₹4,895.65 crore reported under the revised land-border-country rule
Since Press Note 2 of 2026, investors with non-controlling land-bordering-country ownership of up to 10% can use the automatic route after reporting to the Government.
Key facts
- Published
- 21 August 2026
- Section
- FEMA & RBI
- What it is
- Relief
- In force
- Rule notified 1 May 2026
- Who it affects
- Indian companies raising foreign investment; funds with minority LBC investors
In 30 seconds
- 29 investments reported up to 20 August 2026, with proposed FDI of ₹4,895.65 crore.
- No prior Government approval where non-controlling LBC beneficial ownership is up to 10%.
- The beneficial ownership test is now applied at the level of the investor entity.
- Sectoral caps, entry routes and other conditions continue to apply.
हिंदी में सार
Press Note 2 of 2026 के बाद जिन विदेशी निवेशकों में सीमावर्ती देशों की गैर-नियंत्रक हिस्सेदारी 10% तक है, वे सरकार को सूचना देकर automatic route से निवेश कर सकते हैं। 20 अगस्त 2026 तक ऐसे 29 निवेश (₹4,895.65 करोड़) रिपोर्ट हुए हैं।
Before and now
Prior Government approval was needed even where the land-bordering-country beneficial ownership was very small.
Non-controlling LBC ownership of up to 10% can come through the automatic route, after reporting to the Government.
The rule
With Press Note 2 of 2026 and the consequent amendment to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, notified on 1 May 2026, the beneficial ownership test is applied at the level of the investor entity. Investors with non-controlling Land Bordering Country (LBC) ownership of up to 10% can invest through the automatic route, subject to applicable sectoral caps, entry routes and other conditions.
The investor entity can proceed without any other approval, after reporting the relevant information to the Government.
What it was earlier
Under Press Note 3 of 2020, foreign investors with beneficial ownership from land-bordering countries had to obtain prior Government approval even where that ownership was very small.
The numbers so far
Up to 20 August 2026, 29 investments have been reported under the revised framework, across Information Technology, Artificial Intelligence, Information & Communication, Manufacturing, Pharmaceuticals, Data Centres and Transport Services, among others. The investors are based in jurisdictions including Mauritius, the United States, the Republic of Korea, Japan, Singapore, Luxembourg and the Cayman Islands.
Published 21 August 2026. Updated 4 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.