The government is considering setting up a foreign investment regulatory mechanism for post-investment review and monitoring in the country, according to sources.
At present, the consideration is at the discussion level only, they added.
"It has been observed that all countries do oversight on the FDI (foreign direct investment), which is coming into their country. People suggest that in India also, there should be an oversight mechanism. It's a kind of oversight on money, which is coming up in the country as FDI," one of the sources said.
It can help ascertain that the FDI coming into the country is beneficial to the economy and originates from legitimate sources.
India is a major destination for foreign direct investments given its 1.4 billion market, stable policies, demographic dividend, good investment returns and skilled workforce.
The government has taken a series of measures to attract overseas investments like promoting ease of doing business through simplifying procedures and significantly reducing compliance burden for the industry.
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