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).

RBI and SEBI finalize rules for FPIs, reclassifying investments as FDI if exceeding 10% stake in Indian companies.

The Reserve Bank of India on Monday announced that a foreign portfolio investor (FPI) investing in excess of the prescribed 10 per cent limit in a company, shall have the option of divesting their holdings or reclassifying such holdings as foreign direct investment (FDI).

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

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.