Wiser from the Hutch-Vodafone experience, the government is now thinking of clubbing both direct and indirect overseas investment to determine the extent of foreign direct investment in a company.

"There is a thinking in the government that both direct and indirect foreign holding in a company should be taken in to account to find out whether a company is complying with FDI limits in its area of operations," a source familiar with the development said.

This view emerged during the course of review of a whole gamut of issues surrounding direct and indirect holding on the advise of Foreign Investment Promotion Board.

The suggestion was made after complexities surrounding the shareholding pattern in Hutch-Essar caused the Board to defer approval to UK-based Vodafone's acquisition of controlling stake in the Indian mobile operator for over a month.