The RBI Monday directed FPIs to obtain necessary approvals from the government and concurrence from the investee companies when their equity holdings go beyond the prescribed limits and they reclassify the holdings as FDI.

India's central bank on Monday released an operational framework for reclassifying equity investments made by foreign portfolio investors (FPI) that exceed the prescribed limit as foreign direct investment (FDI).

The new framework aims to streamline foreign investments, offering FPIs a compliant route to maintain stakes in Indian firms above the 10% cap.

FEM (NDI) Rules, 2019 prescribe that investment made by the 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 should have the option of divesting their ...

The Reserve Bank of India (RBI) has introduced a new framework that allows foreign portfolio investments (FPIs) to be reclassified as foreign direct investments (FDI) if they exceed a 10% ownership threshold in an Indian company.

RBI introduces operational framework for reclassifying foreign portfolio investments as foreign direct investment if holdings exceed the permissible limit, effective immediately.