RBI, Sebi issue framework for reclassifying FPI investments as FDI
1 month, 1 week ago

RBI, Sebi issue framework for reclassifying FPI investments as FDI

New Indian Express  

MUMBAI: The Reserve Bank of India and the Securities and Exchange Board have directed foreign portfolio investors to obtain necessary approvals from the government and concurrence from the investee companies in cases of acquisition of equity holdings beyond the prescribed limits. The direction better aligns with the Fema rules, the regulators said in separate notifications Monday and helps lift the current 10 percent cap on such investments, with prior government nod. The regulators have issued an operational framework for the reclassification of overseas investments by FPIs to foreign direct investments, outlining the process to be followed in case of breach of the thresholds. The Foreign Exchange Management Act norms prescribe 10 percent threshold for investments made by FPIs in the total paid-up equity capital of a company.

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History of this topic

Sebi norms may have partly fuelled recent FPI sell off
2 weeks, 6 days ago

Sebi norms may have partly fuelled recent FPI sell off

Live Mint  

MUMBAI : Was the humongous foreign portfolio investor selling of the past two months driven only by poor corporate earnings and rising bond yields in the US? One fund manager said some of the funds awaited global index provider MSCI's rebalancing of its Emerging Markets Index on 25 November. Another fund manager said the circular has been "a matter of …

Weekend Wrap: From Swiggy to Zomato, top market movers and news of week
1 month, 1 week ago

Weekend Wrap: From Swiggy to Zomato, top market movers and news of week

Live Mint  

Top News The Securities and Exchange Board of India, in its recent circular, has introduced an abridged Common Application Form for certain Foreign Portfolio Investors. Franklin AMC has launched new fund offers In the mutual fund space, Franklin Templeton Asset Management Company has launched a New Fund Offer for the Franklin India Arbitrage Fund. These developments across regulatory reforms, capital …

RBI introduces framework for reclassification of FPI to FDI
Trending News
1 month, 1 week ago

RBI introduces framework for reclassification of FPI to FDI

Live Mint  

The Reserve Bank of India on Monday introduced a streamlined operational framework to allow foreign portfolio investors to convert their investments to foreign direct investment when equity holdings in Indian companies surpass the prescribed 10% limit. The RBI’s new framework mandates that this reclassification be finalized within five trading days following the transaction that breaches the limit, subject to approvals …

RBI makes changes in framework for reclassification of FPI to FDI | Check new norms
1 month, 1 week ago

RBI makes changes in framework for reclassification of FPI to FDI | Check new norms

India TV News  

The Reserve Bank of India on Monday announced an operational framework for reclassification of investment made by a foreign portfolio investor to foreign direct investment if the entity breaches the prescribed limit. According to the RBI's current norm, an investment made by foreign portfolio investor along with its investor group should be less than 10 per cent of the total …

Government may review restrictions on FDI from China
4 months, 4 weeks ago

Government may review restrictions on FDI from China

Hindustan Times  

The government is holding discussions whether to review the Press Note 3 that restricted foreign direct investments, particularly from China, in April 2020 after some Chinese entities attempted “opportunistic” acquisitions of Indian companies taking advantage of financial stress caused by the Covid-19 pandemic, two officials said on Wednesday. On Monday, the Economic Survey, prepared by chief economic advisor V Anantha …

Sebi amends FPIs' registration rules
5 months, 3 weeks ago

Sebi amends FPIs' registration rules

Deccan Chronicle  

New Delhi: Sebi has tweaked the guidelines for registration of Foreign Portfolio Investors pertaining to non-resident Indians, overseas citizens of India and resident Indians as participant of such foreign investors.Under the new rule, FPIs applying for registration need to ensure that the contribution of a single NRI or overseas citizen of India or resident Indian in its corpus is below …

Indian finance ministry notifies 100% FDI for satellites ahead of Elon Musk's India visit
8 months ago

Indian finance ministry notifies 100% FDI for satellites ahead of Elon Musk's India visit

Firstpost  

Under these new guidelines, foreign investors can now invest up to 100 per cent of FDI into the sector, with 74 per cent being under the automatic route. This includes investments in satellite manufacturing and operations, the ground segment, user segment, as well as satellite data products India will now allow up to 100 per cent FDI investment in satellite …

100% FDI to be allowed in space sector: Centre
10 months ago

100% FDI to be allowed in space sector: Centre

The Hindu  

Prime Minister Narendra Modi-led Union Cabinet on Wednesday took a series of key decisions, which included the approval for amendments to the existing Foreign Direct Investment policy on space sector. The liberalised entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space,” said Union Minister Anurag Thakur. The amended policy extends …

Do Sebi's New Disclosure Rules Impact Large Number Of FPIs?
10 months, 4 weeks ago

Do Sebi's New Disclosure Rules Impact Large Number Of FPIs?

News 18  

Market regulator Sebi does not expect a large number of foreign portfolio investors to be impacted by the new beneficial ownership disclosure norms, according to sources. The sources in the know said FPIs which may be required to provide enhanced disclosures are expected to be significantly less than estimated in the consultation paper and the Sebi board note of October …

SEBI Mandates Additional Disclosures By Foreign Portfolio Investors
1 year, 3 months ago

SEBI Mandates Additional Disclosures By Foreign Portfolio Investors

Live Law  

The Securities and Exchange Board of India has issued a circular aimed at promoting heightened transparency among Foreign Portfolio Investors meeting specific criteria. Although PN3 does not directly apply to FPI investments, there are apprehensions that entities with substantial Indian equity portfolios might misuse the FPI route, potentially disrupting the orderly functioning of Indian securities markets. Under Regulations 22 and …

SEBI Mandates Enhance Disclosure Requirements For Certain FPIs
1 year, 4 months ago

SEBI Mandates Enhance Disclosure Requirements For Certain FPIs

ABP News  

In a bid to bring greater transparency, the Securities and Exchange Board of India on Friday introduced enhanced disclosure requirements for a certain class of Foreign Portfolio Investors. Notably, In June the market regulator had decided to mandate additional granular-level disclosures regarding ownership, economic interest, and control from certain FPIs. "A foreign portfolio investor that fulfills the criteria specified by …

Explained | Why is the markets regulator asking for more disclosures from foreign portfolio investors?
1 year, 6 months ago

Explained | Why is the markets regulator asking for more disclosures from foreign portfolio investors?

The Hindu  

The story so far: On May 31, markets regulator the Securities and Exchange Board of India floated a consultation paper that proposed additional disclosures from Foreign Portfolio Investors. As per the regulator, the objective is to “enhance trust in the Indian securities markets by mandating additional granular disclosures around ownership of, economic interest in, and control of objectively identified high-risk …

India received highest ever FDI inflow of over Rs 6 crore in FY 2021-22
2 years, 4 months ago

India received highest ever FDI inflow of over Rs 6 crore in FY 2021-22

Firstpost  

The increase in FDI inflows is a result of the measures taken by the Government on FDI policy reforms, stated the official statement New Delhi: India received its highest ever Foreign Direct Investment inflow of Rs 6,31,050 crore in Financial Year 2021-22 said Som Parkash, Minister of State in the Ministry of Commerce and Industry. The FDI Equity inflow in …

Why FPI capital flows matter for India
2 years, 6 months ago

Why FPI capital flows matter for India

Live Mint  

The Indian stock market has seen a tectonic shift in the share of cash market turnover of different players. The shock-absorbing capacity of retail investors and their contribution to the stability of the Indian stock market in the face of significant outflow of foreign portfolio investment is remarkable. In the earlier years of liberalization, a major share of foreign investments …

Centre amends FEMA rules to allow 20% FDI in LIC
2 years, 8 months ago

Centre amends FEMA rules to allow 20% FDI in LIC

Hindustan Times  

The government has amended rules of the Foreign Exchange Management Act, paving the way for up to 20 per cent foreign direct investment in the insurance behemoth LIC. Following the Cabinet approval, the Department for Promotion of Industry and Internal Trade on March 14 had amended the Foreign Direct Investment policy to facilitate overseas investment in LIC ahead of the …

Foreign portfolio investors invest ₹1,997 crore so far in October
3 years, 2 months ago

Foreign portfolio investors invest ₹1,997 crore so far in October

The Hindu  

Foreign portfolio investors remained net buyers to the tune of ₹1,997 crore so far in October as India continues to be a competitive investment destination from a long-term perspective. Even though IT is highly valued, this segment is attracting increasing flows since earnings visibility is high in the segment while banking is struggling with poor credit growth and rising asset …

GoI debunks The Hindu propaganda over FDI inflows: Details
3 years, 6 months ago

GoI debunks The Hindu propaganda over FDI inflows: Details

Op India  

The Government of India has debunked the propaganda article published in The Hindu on 2 June 2021 over the surge in FDI inflows for the year 2020-21. The rebuttal from the government says the author erroneously considered FDI inflows of USD 81.72 billion includes amounts attributable to ‘repatriation/disinvestment’ and ‘FII investments’. Source: Government of India “The RBI data is purported …

India's FDI equity inflow up 28% year-on-year in April-January period
3 years, 8 months ago

India's FDI equity inflow up 28% year-on-year in April-January period

Business Standard  

India's FDI equity inflow up 28% year-on-year in April-January period Singapore is the top source of FDI in India, with 30.28% share of entire FDI equity inflow. US comes next, with 24.28% and UAE at 7.31% Premium In January, Japan topped the list of investor countries to invest in India with 29.09 per cent of the total inbound equity FDI, …

Non-Convertible Debentures: Entry Routes For Foreign Investors
3 years, 11 months ago

Non-Convertible Debentures: Entry Routes For Foreign Investors

Live Law  

Since January 2020, there have been more than 10 public issues of non-convertible debentures and over 1,600 private placements of corporate bonds in India, which is encouraging given the COVID-19 pandemic and brief loss of investor appetite in the initial phase of the pandemic. FPIs are subject to a separate regulatory framework in respect of acquisition or subscription of NCDs, …

Opinion | How pursuit of good governance is driving investments in India
4 years ago

Opinion | How pursuit of good governance is driving investments in India

Live Mint  

The saying goes, "The pessimist complains about the wind. While foreign portfolio investor inflows across emerging economies witnessed a decline due to the pandemic, India recorded a surge to $13.5 billion - a testimony to investor confidence in India's growth story. The National Infrastructure Pipeline, a ₹13 trillion project, is one of the examples of how Prime Minister Narendra Modi's …

Reforms in IPO rules, development of corporoate bond market discussed with U.S. investors: SEBI
4 years, 1 month ago

Reforms in IPO rules, development of corporoate bond market discussed with U.S. investors: SEBI

The Hindu  

Early finalisation of the direct listing scheme, development of the corporate bond market, reforms in IPO norms and digitisation of processes among other issues were discussed between SEBI and investors from the U.S. SEBI chairman Ajay Tyagi, along with other officials of the capital markets regulator, had an e-interaction on Tuesday with various stakeholders including industry and investor associations from …

Govt Permits Up to 74 per cent FDI Under Automatic Route in Defence Sector
4 years, 3 months ago

Govt Permits Up to 74 per cent FDI Under Automatic Route in Defence Sector

News 18  

The government has permitted foreign direct investment of up to 74 per cent under automatic route in the defence sector with a view to attracting overseas investors, according to a press note issued by the DPIIT on Thursday. As per the current FDI policy, 100 per cent overseas investments are permitted in the defence industry — 49 per cent under …

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