New Delhi, March 11 -- The Union Cabinet chaired by Prime Minister Narendra Modi has approved change in guidelines on investments from countries sharing land border with India (LBCs). The existing policy has been reviewed and amended.

The amendment provides for incorporation of the definition and criteria for determination of 'Beneficial Owner' (BO), a definition widely used by the investing community under the Prevention of Money Laundering Rules, 2005. The Beneficial Ownership test will be applied at the level of the investor entity.

Under the revised guidelines, investors with non-controlling LBC Beneficial Ownership of up to 10 percent will be permitted under the automatic route as per the applicable sectoral caps, entry routes and ...