What changed
Press Note 2 of 2026 clarifies the land-border rule. It applies where an investor, or its beneficial owner, is from a land-border country; for a company that means more than 10% or control, tested under anti-money-laundering rules. Ownership within 10% and without control may use the automatic route but must be reported on the portal before money is remitted. A 60-day fast track covers up to 49% in Indian-controlled makers of capital goods, electronic components, polysilicon or wafers, advanced battery components and rare-earth magnets. Legal effect followed on 2 May 2026.
Who it affects
Investors with any land-border ownership in the chain, and Indian companies raising from them.
What to do
Trace beneficial ownership through the whole chain and file the prior report before remitting funds.