When is a SWF not a SWF?

Well, this is the story that is published on FT Alphaville; but I did not include this in the links list because it was just too important to be mentioned and studied separately. The chief executive of Singapore's SWF Temasek has announced that Temasek may allow public investment in the fund for the first time. This may raise several new issues related to investment objectives, transparency and exits.

The instant issue which crops up is - who is the investor in a foreign company. Suppose a partiular foreign entity is not allowed to invest in a restricted sector in India and the same entity invests in a foreign SWF. Now is this SWF (being a SWF) invests in the restricted sector then what kind of regulations / policies will govern the transaction? (The underlying assumption is that a trusted SWF shall be given some concession).

Sovereign Wealth Fund Institute lists various SWF and also rates them on transparency on a scale of 10. If we assume that their ranking methodology closely resembles the actual transparency, then we find that Temasek is ranked at highest 10.