RBI, Sebi issue framework for reclassifying FPI investments as FDI
4 months, 2 weeks 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.

Fdi Fpi Investments  reclassify  framework  foreign  regulators  obtain  rules  issue  fpi  investments  notifications  sebi  rbi  fdi  prior  reclassifying  fpis

History of this topic

Sebi to simplify registration for FPIs looking to invest in govt securities
2 months, 2 weeks ago

Sebi to simplify registration for FPIs looking to invest in govt securities

Live Mint  

Mumbai: India's capital markets regulator is set to ease the registration of foreign portfolio investors if they want to invest in government-backed securities, even as it proposed doubling the equity investment threshold set for granular disclosures by FPIs to ₹50,000 crore. "There will be zero requirements for a lot of things including investor group all that data will not be …

Sebi norms may have partly fuelled recent FPI sell off
3 months, 3 weeks 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
4 months, 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
4 months, 2 weeks 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
4 months, 2 weeks 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
8 months 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
9 months 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
11 months, 1 week 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
1 year, 1 month 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?
1 year, 2 months 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, 7 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, 7 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, 9 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, 7 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, 9 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, 11 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, 5 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, 9 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, 11 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
4 years, 2 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, 3 months 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, 5 months 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, 6 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 …

FDI policy change may dry up access to Chinese investments in post-covid world
4 years, 11 months ago

FDI policy change may dry up access to Chinese investments in post-covid world

Live Mint  

The government’s effort to ring fence Indian industry from opportunistic acquisitions by China may dry up access to Chinese investments in the post-covid-19 world. Growth-stage startups may The change in FDI rule is too drastic a move and could potentially end the growth of the booming startup ecosystem in India, said Mahendra Swarup, chairman, Startup India Association. “We can expect …

New FDI rules may have unintended effects
4 years, 11 months ago

New FDI rules may have unintended effects

The Hindu  

The Ministry of Commerce press note amending the FDI policy to make investments from countries which ‘share a land border’ with India can only be construed as being aimed at Chinese investors. Making government approval necessary for acquisitions in private companies by Chinese investors will only reduce the number of potential investors available for a prospective seller, and drive down …

Overseas investors from Mauritius eligible for FPI registration with enhanced monitoring, says SEBI
5 years, 1 month ago

Overseas investors from Mauritius eligible for FPI registration with enhanced monitoring, says SEBI

Firstpost  

Following the FATF notice, some fund managers knocked on SEBI’s door overnight, raising concerns over validity of FPI registration done through the tax haven. New Delhi: Market regulator Sebi on Tuesday said foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per international norms. The announcement comes after the tax haven was put …

Foreign investors from Mauritius to continue being eligible for FPI registration with increased monitoring: SEBI
5 years, 1 month ago

Foreign investors from Mauritius to continue being eligible for FPI registration with increased monitoring: SEBI

Firstpost  

The SEBIannouncement comes after the tax haven was put on the ‘grey list’ of Financial Action Task Force —an inter-governmental policy-making body that sets anti-money laundering standards New Delhi: Market regulator Sebi on Tuesday said foreign investors from Mauritius will continue to be eligible for FPI registration with increased monitoring as per international norms. The announcement comes after the tax …

FPI flows to still remain under pressure: Ind-Ra
5 years, 6 months ago

FPI flows to still remain under pressure: Ind-Ra

The Quint  

Mumbai, Sep 4 Credit rating agency India Ratings and Research on Wednesday said that foreign portfolio investment flows into India are expected to remain under pressure over the near-to-medium term. The agency expects hindrance to FPI flows despite the accommodative global monetary policy stance and the Central government's efforts to alleviate uncertainty regarding the higher surcharge. "Notwithstanding a series of …

Macroeconomic headwinds weighed on investor sentiments in 2018-19: Sebi report
5 years, 6 months ago

Macroeconomic headwinds weighed on investor sentiments in 2018-19: Sebi report

Live Mint  

New Delhi: As macroeconomic headwinds weighed on investor sentiments through the year, foreign portfolio investors pulled out ₹38,930 crore in 2018-19, according to market regulator Sebi's annual report. "In order to further develop the Indian securities market as an avenue for fundraising, eligibility norms for FPIs were relaxed and data privacy concerns of FPIs were addressed," the 2018-19 annual report …

Cabinet may relax FDI in retail, okay ordinance to roll back FPI surcharge
5 years, 7 months ago

Cabinet may relax FDI in retail, okay ordinance to roll back FPI surcharge

India TV News  

The Union Cabinet in its meeting on Wednesday would take up proposals to relax foreign direct investment in various sectors, including single-brand retail and digital media, as announced by Finance Minister Nirmala Sitharaman in her maiden Budget last month. The cabinet chaired by Prime Minister Narendra Modi may also consider approving an ordinance to roll back surcharge on foreign portfolio …

Sebi eases requirements for FPIs
5 years, 7 months ago

Sebi eases requirements for FPIs

Live Mint  

Mumbai: Easing the regulatory framework for foreign portfolio investors, Sebi on Wednesday simplified KYC requirements for them and permitted them to carry out off-market transfer of securities. The proposals were cleared by the Sebi's board during its meeting here as part of efforts to simplify and expedite the registration process for foreign portfolio investors. Apart from doing away with the …

FPI outflows, trade war concerns to keep equities volatile
5 years, 7 months ago

FPI outflows, trade war concerns to keep equities volatile

Live Mint  

Mumbai: Concerns over the flight of foreign funds along with fears of further escalation in US-China trade war are expected to keep the Indian equity markets volatile during the upcoming week. "RBI is scheduled to meet next week and there is an expectation that the central bank will go for a rate cut," said SMC Investments & Advisors Chairman and …

Now FPIs can invest in municipal bonds: Sebi
5 years, 10 months ago

Now FPIs can invest in municipal bonds: Sebi

Deccan Chronicle  

Mumbai: Close on the heels of the Reserve Bank of India permitting Foreign Portfolio Investors to invest in municipal bonds, the capital markets regulator Sebi followed it up with a circular on Wednesday. As per the RBI, foreign investment in municipal bonds should be within the limits set for FPI investment in State Development Loans. As on March 2019, the …

RBI lifts cap on FPI investments in corporate bonds to encourage more foreign fund flows
6 years, 1 month ago

RBI lifts cap on FPI investments in corporate bonds to encourage more foreign fund flows

Firstpost  

The Reserve Bank of India on Friday withdrew the 20 percent limit on investments by foreign portfolio investors in corporate bonds of an entity with a view to encourage more foreign investments Mumbai: The Reserve Bank of India on Friday withdrew the 20 percent limit on investments by foreign portfolio investors in corporate bonds of an entity with a view …

Sebi plans to ease FPI norms; will allow clubbing of investment limits
6 years, 3 months ago

Sebi plans to ease FPI norms; will allow clubbing of investment limits

Live Mint  

New Delhi: In a series of reforms, capital markets regulator Securities and Exchange Board of India is planning to expand its Offer For Sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules. The regulator is also planning to relax its disclosure norms for housing finance companies and …

Revised Sebi FPI norms fail to bring relief to NRI fund managers
6 years, 3 months ago

Revised Sebi FPI norms fail to bring relief to NRI fund managers

Live Mint  

Mumbai: The woes for non-resident Indian fund managers have not ended. A modified circular on foreign portfolio investors eligibility and identification of beneficial ownership issued in September has made it difficult for them to create viable structures in compliance with the law, said three fund managers, requesting anonymity. “While the majority of concerns were addressed, there are still some issues, …

Revised Sebi FPI norms fail to bring relief to NRI fund managers
6 years, 3 months ago

Revised Sebi FPI norms fail to bring relief to NRI fund managers

Live Mint  

Mumbai: The woes for non-resident Indian fund managers have not ended. A modified circular on foreign portfolio investors eligibility and identification of beneficial ownership issued in September has made it difficult for them to create viable structures in compliance with the law, said three fund managers, requesting anonymity. “While the majority of concerns were addressed, there are still some issues, …

Relief for FPIs as Sebi eases KYC guidelines
6 years, 6 months ago

Relief for FPIs as Sebi eases KYC guidelines

Live Mint  

Mumbai: The Securities and Exchange Board of India on Friday relaxed know-your-client requirements norms for foreign portfolio investors. After considering the interim recommendations of the Sebi working group under the chairmanship of Harun R. Khan, a former deputy governor of the Reserve Bank of India, the capital markets regulator said beneficial ownership criteria in Prevention of Money Laundering Rules, 2005, …

Sebi’s fight with FPIs is what’s really preposterous
6 years, 6 months ago

Sebi’s fight with FPIs is what’s really preposterous

Live Mint  

On Monday, a group of foreign portfolio investors got together and claimed that investments worth $75 billion were at risk because of a Securities and Exchange Board of India circular issued in April this year. On Tuesday, Sebi reacted to the suggestion with an uncharacteristically strong statement: “It is preposterous and highly irresponsible to claim that 75 billion dollars of …

Sebi defends stance on new rules for foreign portfolio investors
6 years, 6 months ago

Sebi defends stance on new rules for foreign portfolio investors

Live Mint  

Mumbai: The Securities and Exchange Board of India on Tuesday defended its stance on new rules for foreign portfolio investors, saying warnings of a capital flight were “preposterous” and “highly irresponsible.” Lobby group Asset Management Roundtable of India or Amri on Monday said the immediate impact of the new Sebi norms, if not amended, will be that $75 billion investment …

Govt issues minimum FDI requirement for unregistered financial services entities
6 years, 11 months ago

Govt issues minimum FDI requirement for unregistered financial services entities

Firstpost  

The minimum FDI capital is $20 million for unregistered/exempted entities engaged in ‘fund based activities’. New Delhi: The government on Monday fixed minimum overseas capital requirement for certain class of unregistered and unregulated entities offering financial services under the foreign direct investment regime. The finance ministry came out with ‘minimum capital requirements for other financial services activities which are unregulated …

Is FDI really a gift horse?
8 years, 8 months ago

Is FDI really a gift horse?

The Hindu  

In less than a year, the Government of India has announced yet another set of “ > radical changes ” in foreign direct investment policies. Last year’s announcement stated that the policy changes were intended to “ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead …

The Centre’s big reform push: It's 100% FDI in most sectors
8 years, 9 months ago

The Centre’s big reform push: It's 100% FDI in most sectors

The Hindu  

With India now acknowledged as the fastest growing large economy in the world and also edging up in the World Bank’s ease of doing business rankings, the time is ripe for the country to open its doors wider to Foreign Direct Investment. That foreign investors are interested in India is evident: there has been a 23 per cent surge in …

FIPB clears 6 FDI proposals worth Rs 1,810 crore
9 years, 4 months ago

FIPB clears 6 FDI proposals worth Rs 1,810 crore

India TV News  

New Delhi: The Foreign Investment Promotion Board has cleared six FDI proposals envisaging foreign investment of Rs 1,810 crore, including that of IIFL Holdings. "Based on the recommendations of FIPB in its meeting held on October 30, 2015, the government has approved six proposals of Foreign Direct Investment amounting to Rs 1,810.25 crore," a Finance Ministry statement said today. The …

Let’s be realistic on FDI
9 years, 4 months ago

Let’s be realistic on FDI

The Hindu  

In yet another significant move to attract foreign direct investment, the >government has opened the door wider in several major sectors of the Indian economy, through what it calls “path-breaking” amendments in the extant FDI policy. These amendments can be clubbed into three categories: a “radical change” in the FDI regime in the construction sector; an increase in the threshold …

Reforms redux: a welcome signal
9 years, 4 months ago

Reforms redux: a welcome signal

The Hindu  

The announcement of reforms in >foreign direct investment norms in a raft of sectors comes as a Deepavali bonanza to investors and the markets. The decision to allow foreign institutional investors, foreign portfolio investors and qualified foreign investors to independently or together own up to 74 per cent — the prescribed sectoral limit — in private banks, subject to management …

Easing of FDI norms to send positive signal to investors, says Corporate India
9 years, 4 months ago

Easing of FDI norms to send positive signal to investors, says Corporate India

Firstpost  

The government relaxed conditions for FDI in single-brand retail and allowed 100 percent FDI under automatic route in duty-free shops and Limited Liability Partnerships and eased foreign investment norms in the defence sector. New Delhi: Government’s move to relax foreign investment rules in 15 sectors and ease the process for FDI approval proves the reforms agenda is on track and …

FIPB clears four FDI proposals worth Rs. 384 crore
9 years, 4 months ago

FIPB clears four FDI proposals worth Rs. 384 crore

The Hindu  

The Foreign Investment Promotion Board has cleared four FDI proposals worth Rs 384 crore including that of pharma firm Lupin. “Based on the recommendations of FIPB in its meeting held on October 19, 2015, the Government has approved four proposals of Foreign Direct Investment amounting to Rs 384.45 crore,” a Finance Ministry statement said. However, the Board deferred five FDI …

RBI to open up FPI limits in debt in phases
9 years, 5 months ago

RBI to open up FPI limits in debt in phases

Live Mint  

Mumbai: The Reserve Bank of India will increase the foreign investment limit in central government securities to 5% of the outstanding stock of such securities by March 2018, the central bank said as part of its bimonthly monetary policy on Tuesday. In aggregate terms, this is expected to open up room for additional investment of ₹ 1,200 billion in the …

Discover Related