Press Note 3 (2020) And Offshore Acquisitions: When India’s Investment Safeguards Shape Global Transactions

Press Note 3 (2020) introduced a calibrated foreign investment screening framework requiring government approval for investments from countries sharing land borders with India, aimed at safeguarding domestic companies from opportunistic acquisitions during the COVID-19 period. While subsequent amendments in 2026 seek to streamline approval processes and refine beneficial ownership thresholds, the regime continues to play a decisive role in cross-border transactions.

In this article, through the lens of the Euro Group and FountainVest deal, we critically analyse India’s foreign investment screening framework under Press Note 3 (2020), including its 2026 amendments, and examine its evolving impact on cross-border transactions.