New Delhi, May 2 -- The government has tightened foreign investment rules by mandating prior approval for investments from countries sharing a land border with India, including cases involving indirect or beneficial ownership, according to a notification issued by the Ministry of Finance.

The notification said that entities from such countries "shall invest only under the Government route," reinforcing the requirement for prior approval before investing in Indian companies.

Further tightening the norms, the government clarified that even future changes in ownership will come under scrutiny. It stated that "in the event of the transfer of ownership... resulting in the beneficial ownership falling within the restriction... such subsequent...