News & Media 2nd Jul 2019

Is Sovereign Guarantee / Letter of Comfort an enabler for liberalisation of foreign investment in the Indian defence sector?

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India’s proposal to grant a foreign stakeholder a right to hold a controlling stake in an Indian entity engaged in the defence sector is a major step by the Government of India. This article analyzes the consequences of providing such a controlling stake to a foreign stakeholder and proposes certain counter protective measures that would be critical in mitigating potential risks.

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