RBI issues operational framework for reclassification of FPI to FDI

Quick Summary:

The Reserve Bank of India on Monday issued an operational framework for reclassification of investment made by a foreign portfolio investor to foreign direct investment (FDI) if the entity breaches the prescribed limit.

Currently, an investment made by foreign portfolio investor along with its investor group (FPI) should be less than 10 per cent of the total paid-up equity capital on a fully diluted basis.

Any FPI investing in breach of the prescribed limit has the option of divesting their holdings or reclassifying such holdings as FDI subject to the conditions specified by the RBI and Sebi within five trading days from the date of settlement of the trades causing the breach.

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Article Details

Category: BusinessFinance

Markets: India

Topics: FDI rules RBI FPI rules FDI classification FPI framework

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-11 @ 16:31:16 (1 weeks ago)

News Timezone: GMT +5:00

News Source URL: business-standard.com

Language: English

Article Length: 322 words

Reading Time: 2 minutes read

Sentences: 13 lines

Sentence Length: 25 words per sentence (average)

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Copyright Owner: © Business Standard

News ID: 23513479

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