The government on Monday informed the Lok Sabha that there were 3,560 companies in India that had Chinese directors on their boards. In a written reply, Minister of State for Corporate Affairs Rao Inderjit Singh said there are 174 Chinese companies that are registered in the country as foreign companies with India as the place of business.
"... as per the CDM database, there are 3,560 companies in India which have Chinese directors. It is not possible to give the number of companies having Chinese investors/ shareholders as the data is not separately maintained in the MCA (Ministry of Corporate Affairs) system," Singh informed the House.
The Corporate Data Management (CDM) portal has been developed by the ministry as an in-house data analytics and business intelligence unit.
In recent times, the central government has modified certain rules pertaining to the incorporation of companies under the Companies Act, 2013 in a bid to regulate the 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.
"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," Singh added in his response.
With inputs from PTI
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