This is a likely reference to the possibility of Chinese investors purchasing undervalued shares of Indian-listed companies. A plain reading of the amended policy makes every type of investment by Chinese investors subject to government approval. It also does not distinguish between the different types of investors, such as industry players, financial institutions, or venture capital funds. Moreover, the most visible ‘Chinese investors’ in India, most in the Internet space, may not even come under the definitions of the new rules. Instead, issuing an amendment that reverses what has been a highly-advertised new FDI policy position may have unintended consequences in the minds of foreign investors.

Source: The Hindu April 18, 2020 16:56 UTC