New Delhi: A number of Chinese as well as some foreign companies that are present in India, are under the ‘scanner for alleged links’ with the People’s Liberation Army (PLA), Times of India reported.
This comes as the Government of India presses ahead with its plan to prune China’s involvement in the Indian economy, the report said.
According to the report, companies, including start-ups with Chinese funds, will be ‘scrutinised in detail to ensure that they do not pose any security threat’.
The Finance Ministry and Securities and Exchange Board of India (SEBI) are ‘finalising the threshold for imposing checks on FII flows from across the border’, while seeking to ensure that the rules do not ‘impact market sentiment’.
“The data are being looked at and the two agencies will decide the threshold and the system of reporting and monitoring,” a government source was quoted saying.
The Chinese companies have come under the radar, after the Modi government’s decision to end bilateral economic and trade ties with Beijing. The decision came as a retaliation against PLA’s attack on Indian troops on the night of June 15 at Galwan Valley in Ladakh.
The posture was unveiled dramatically with the government banning 59 Chinese Apps — something which marked a blow to China’s ambition to see its companies grow into global tech giants to rival American players.
Already a number of countries — ranging from the US, UK and Australia — have imposed curbs on the operation of the Chinese telecom vendor, Huawei, whose founder was allegedly involved with the PLA. The company has maintained that there are no links with the Chinese Army.
“The new rules will help keep tabs on the beneficial owners and also maintain a database,” the report quoted a government source as saying.
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