TMI BlogInvestments by Foreign Portfolio InvestorsX X X X Extracts X X X X X X X X Extracts X X X X ..... ch series of debentures or preference shares or share warrants issued by an Indian company and the total holdings of all FPIs put together, including any other direct and indirect foreign investments in the Indian company 1 [ by FPIs ] permitted under these rules, shall not exceed 24 per cent of paid-up equity capital on a fully diluted basis or paid up value of each series of debentures or preference shares or share warrants. The said limit of 10 percent and 24 percent shall be called the individual and aggregate limit, respectively. 2 [ Provided the aggregate limit of 24 per cent may be increased by the Indian company concerned up to the sectoral cap/ statutory ceiling, as applicable, with the approval of its Board of Directors an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments/their related entities are having common ownership, directly or indirectly, of more than fifty percent or common control, all such FPI s shall be treated as forming part of an investor group. Control includes the right to appoint majority of the directors or to control the management or policy decisions exercisable by a person or persons acting individually or in concert, directly or indirectly, including by virtue of shareholding or management rights or shareholders agreements or voting agreements or in any other manner. 3 [ The FPIs investing in breach of the prescribed limit shall have the option of divesting their holdings within five trading days from the date of settlement of the trades causing the breach. In case the FPI c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nments or by an order of the Central Government. (v) A FPI may purchase equity instruments of an Indian company through public offer or private placement, subject to the individual and aggregate limits specified under this Schedule: Provided that - (A) in case of public offer, the price of the shares to be issued is not less than the price at which shares are issued to residents, and (B) in case of issue by private placement, the price is not less than- (a) the price arrived in terms of guidelines issued by the Securities and Exchange Board of India, or (b) the fair price worked out as per any internationally accepted pricing methodology for valuation of shares on arm s length basis, duly certified by a Merchant Banker or Charte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. S.O. 4355(E). dated 05-12-2019 w.e.f. 17-10-2019 2. Inserted vide Notification No. S.O. 4355(E). dated 05-12-2019 w.e.f. 17-10-2019 3. substituted vide Notification No. S.O. 1374(E) dated 27-04-2020 before it was read as (iii) The FPIs investing in breach of the prescribed limit shall have the option of divesting their holdings within 5 trading days from the date of settlement of the trades causing the breach. In case the FPI chooses not to divest, then the entire investment in the company by such FPI and its investor group shall be considered as investment under Foreign Direct Investment (FDI) and the FPI and its investor group shall not make further portfolio investment in the company concerned. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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