The Ministry of Home Affairs issued a notification on June 1 which stated that the citizens from the countries sharing the land border with India including China and Hong Kong will require security clearance for appointment as director on the boards of the Indian companies.
This notification will have an impact, among others, on the Chinese manufacturing companies that have subsidiaries in India and China or Hong Kong-based private equity or venture funds that have invested in startups here.
The government issued this notification after it found that China and Hong Kong investors were circumventing April 2020 restrictions on foreign investments from neighboring countries by devising alternate corporate structures.
Amukha through its Risk Analytics System (RAS) can help the counter parties to identify the companies whose directors belong to China or Hong Kong or any other neighboring country.
The identification of such companies can help in performing further checks on whether the necessary security clearances were obtained from the home ministry or not for the board appointments.
Here, we have highlighted a few companies for which “Active Director belongs to Hong Kong/China” alert has been triggered in our early warning system RAS.
| Company Name | Rule Alert | Director Name | Authority | Score |
| CMR Green Technologies Ltd | Active Director belongs to Hong Kong/China | Peter Francis Amour | MCA | -5 |
| SSIPL Retail Ltd | Active Director belongs to Hong Kong/China | Frederic Jean Emmanuel Azemard | MCA | -5 |
| Arohan Financial Services Ltd | Active Director belongs to Hong Kong/China | Paul Gratien Robine | MCA | -5 |
| Manash Lifestyle Pvt Ltd | Active Director belongs to Hong Kong/China | Niladri Mukhopadhyay | MCA | -5 |
To know more about Amukha EWS application, please get in touch with us at info@amukha.com
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