Tuesday May 25 2010

News Source: Global Disclosures

Focus: Foreign Investment

Type: General

Country: India




The Reserve Bank of India has clarified that the 10% individual investment limit under the Portfolio Investment Scheme is also applicable to investments by the same entity for Foreign Direct Investment.

As a result, an India foreign institutional investor can invest in a maximum of 10% of the paid up capital of an Indian entity; these holdings are combined with those under the Portfolio Investment Scheme, thus the two investments combined must not exceed 10%.