On 17 May 2012, the Law on foreign investment in strategic sectors - SFIL (banking, finance, mining, media and communications) came into force. Under this law, government approval is required for the acquisition of, or the right to acquire, 33% or more of the shares in a business entity of strategic importance (BESI) by a foreign investor. Government approval is also required if as a result of a proposed acquisition of an interest in an BESI, a foreign investor has the right, regardless of percentage of equity interest to: (1) solely appoint the executive management or a majority of the board; (2) veto decisions of the executive management or board of directors, or (3) determine or implment decisions and/or operations. Parliament approval is required  if a foreign investor stake in companies operating in strategic industries exceeds 49% and the investment amount exceeds MNT100bn (US$70mn). On 19 April 2013, Mongolia's parliament passed amendments to the SFIL to ease restrictions on foreign investors. The new amendment removed parliamentary approvals for foreign non-state owned companies and threshold of MNT100bn (US$70mn). A notification is however required in the case a foreign investor acquires an interest in a BESI of between 5% and 33%, and government approval is required if private foreign investment exceeds 49% stake. The investments of state owned or state participated companies still need parliamentary approval in case the investment exceeds 49% stake.  
On 3 Oct 2013, Mongolian parliament approved the country's new Investment Law. The new law abolishes the previous Law (from 17 May 2012) on foreign investment in strategic sectors (banking, finance, mining, media and communications) and the 1993 Foreign Investment Law. The new Investment Law does not maintain the governmental approval requirement (which had been introduced in 2012 by SFIL), with the exception of cases where a foreign state-owned entity (which is defined as an entity which has at least 50% of its shares owned by a foreign states) attempt to acquire 33% or more of the shares of a Mongolian legal entity operating in a strategic sector. The screening of investment by foreign SOEs is not considered a restriction under the FDIRRI, and is therefore only recorded for transparency purposes as 'screning for safeguarding essentials ecurity interests'.
"Article 3. Definition of terms
1) Terms used in this Law shall be understood in the following meaning: [...]
3.1.3."foreign investor" means a foreign legal entity or individual /a foreign citizen or stateless person who is a non-resident in Mongolia and a Mongolian citizen residing permanently in a foreign country/ that invests in Mongolia;
3.1.4."domestic investor" means a legal entity or individual registered in Mongolia /a Mongolian citizen and a foreign citizen or stateless person who resides permanently in Mongolia/ that makes an investment in Mongolia; [...]
3.1.5."business entity with foreign investment" means a business entity incorporated according to the legislation of Mongolia and not less than 25 percent of the total share capital is held by a foreign investor, and the investment amount by each foreign investor equals or more than USD 100,000 or its equivalent in Mongolian tugriks;
3.1.6."representative office of a foreign business entity" means a person that has no legal entity status and was established in Mongolia by a foreign legal entity for the purpose of having representation based on a power of attorney;
[...]
CHAPTER SIX - INVESTMENT BY A FOREIGN STATE OWNED LEGAL ENTITY
Article 21.Investment by a foreign state-owned legal entities
21.1.Permit shall be obtained if foreign state-owned legal entities holds 33 or more of the total issued shares of Mongolian legal entities operating in the following fields:
21.1.1.mining;
21.1.2.bank and finance;
21.1.3.the media and communications.[...]" [Law On Investment, 1 November 2013, amended]

Law On Investment, 1 November 2013, as amended
[<a href="https://legalinfo.mn/en/edtl/16532311213281">Law</a>]