Market regulator Securities and Exchange Board of India (SEBI) may tighten rules for investors from China and other neighbouring countries, according to a Business Standard report.
The move comes after India tightened foreign direct investment (FDI) norms, raising the scrutiny on investments from nations sharing a border.
Moneycontrol could not independently verify the story.
SEBI is considering capping purchasing limits, after which further approvals will be mandatory, Business Standard reported.
The market regulator may also prohibit custodians from settling trades without proper identification of the beneficiaries.