Private placements may get FDI tag even if below 10% threshold

Comments 0
A finance ministry official told FE that all aspects of foreign investment were being discussed. Reuters A finance ministry official told FE that all aspects of foreign investment were being discussed. Reuters
SummaryGovernment and RBI may allow a couple of exceptions to the proposed rule.

10% in initial public offerings, follow-on public offerings and qualified institutional placement in a listed company may also come under FPI, a suggestion not initially made by the Chandrasekhar panel.

Sources said the Mayaram panel, of which RBI deputy governor HR Khan is also a part, is expected to keep the classifications of non-resident Indians (NRI) and person of Indian origin (PIO) investment groups unchanged.

NRIs/PIOs will continue to be viewed as a distinct market participant enjoying certain privileges in terms of investment permissions not available to foreign investors and will continue to have an aggregate investment limit of 10%.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...