RBI’s Framework for Reclassification of FPI to FDI
On 11th November, 2024, the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) issued new framework directing foreign portfolio investors (FPIs) to secure government approval and concurrence from investee companies if they acquire equity stakes that exceed prescribed limits.
Aim
- To streamline foreign investments, offering FPIs a compliant route to maintain stakes in Indian firms above the 10% cap.
Major Highlights
Prohibited Sectors
- Reclassification is not permitted in sectors where foreign direct investment (FDI) is prohibited under the Rules.
Mandatory Approvals
- FPIs are required to obtain the concurrence of the Indian investee ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
Economy Watch
- 1 MSMEs: Core of India’s Global Growth Strategy
- 2 India Enhances Domestic Rare Earth Ecosystem
- 3 National Monetisation Pipeline 2.0 (NMP 2.0)
- 4 Municipal Bonds: A Path to Self-Reliant Cities
- 5 Centre Launches CBDC-based Digital Food Coupon Pilot in Gujarat
- 6 Strengthening Capital Goods Sector
- 7 NGT Clears Great Nicobar Island Mega-infrastructure Project
- 8 India Distributed Renewable Energy Summit 2026
- 9 Integrated Farming System For Small Farmers
- 10 India’s Rice Boom: Feeding the Nation or Fueling Future Risks
