During the Parliament winter sessions, the government informed the House on Monday that there were 174 Chinese companies registered in the country as foreign companies having a place of business in India with the ministry of corporate affairs (MCA).
The government also said as per the CDM database, there are 3,560 companies in India which have Chinese directors. However, the government mentioned that it was not possible to give the number of companies having Chinese investors or shareholders as the data is not separately maintained in the MCA system.
Upon a query about whether the government has taken or proposes to take some steps to stop the stakes of Chinese companies in domestic companies, it said it amended certain rules and forms prescribed under the Companies Act, 2013, to regulate the incorporation of companies, the appointment of directors, issuance and transfer of securities and undertaking compromise, arrangements and amalgamation in cases where Land Border Countries Entities (LBCEs) are involved.
The government also added that new requirements have been provided through such amendments for disclosures, in such cases, about government approval obtained under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, or for obtaining security clearance from the ministry of home affairs, Government of India.
CDMs are a type of data model that aims to present data entities and relationships in the simplest possible form to integrate processes across various systems and databases.
( With inputs from ANI )
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