“The government’s formal clarification (on beneficial owner) — aligning policy with prevailing market practice — is a major boost for investors,” Sunil Kumar, Partner, EY India.
“In the absence of such clarity, several investors had remained on the sidelines or attempted to restructure their shareholding solely to avoid the approval requirement. The ambiguity around what constituted beneficial ownership meant that conservative investors were postponing decisions, as even small investments triggered an approval process that typically involved a 6–8‑month wait and uncertainty over the outcome,” Kumar noted.
