The unequivocal lockdown declared by the Government of India towards the end of March 2020 is primarily considered to be the most potential and effective preventive measure against COVID-19. However, everything has its own cost and in the present case, where India is undergoing economic slowdown, which may make many Indian corporates an easy target for acquisition by foreign entities.
Thus, in order to curb this opportunistic or the price advantageous takeovers in the time of worldwide catastrophe, the Ministry of Commerce and Industries, Government of India has notified Press Note 3 (2020 series) dated April 17, 2020 which seeks impose stricter measures on foreign investment in India. This step is consistent with the recent measures adopted by the other jurisdictions like the European Union, Australia, etc. to protect their domestic companies from opportunistic takeovers
The key to getting the approval of the Government of India is fair dealing and fair pricing. For instance, one of factor is that the proposed investment or the acquisition should be at the fair price i.e. atleast the price prevailing prior to the COVID-19 impact on India.