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flag RBI allows foreign portfolio investors to reclassify investments as FDI if they exceed 10% of a company’s equity.

flag The Reserve Bank of India (RBI) introduced a new framework to allow foreign portfolio investors (FPIs) to reclassify their investments as foreign direct investments (FDI) if they exceed a 10% limit of a company's total paid-up equity. flag FPIs must either divest or reclassify their holdings within five trading days, subject to government and investee company approval. flag The reclassification is not allowed in sectors prohibited for FDI, and FPIs must comply with reporting requirements under the Foreign Exchange Management Act.

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