India is poised to tighten its foreign direct investment (FDI) regulations, broadening the scope to include companies with indirect foreign ownership. The proposed changes aim to prevent investors from circumventing FDI policy and will impact sectors like e, e-commerce and pharmaceuticals, requiring reporting for share transfers.

• New 'FOCE' category includes firms with indirect investment.
• Restructuring/transfers may trigger FDI obligations.
• Aims to curb bypassing of FDI regulations.