India eases Portfolio Investment Scheme rules as rupee strengthens
India just made it easier for people and companies from abroad to invest in its stock market.
The government has notified the rules, letting more overseas investors join through the Portfolio Investment Scheme.
This move aims to keep money flowing into India and the rupee also strengthened from 95.74 against the US dollar last week to 95.08 now.
Per investor 10% cap, aggregate 24%
Foreign investors can now own up to 10% of a listed company (up from 5%), and all foreign holdings together can reach 24% (previously just 10%).
If an individual PROI goes over the 10% limit, they have five trading days to fix it or their investment gets reclassified as FDI if the excess holding is not divested.
Investments that would transfer ownership or control to entities or citizens of countries sharing a land border with India, or where the beneficial owner is a citizen of such a country, require prior government approval.
Divestment and reclassification will be guided by conditions specified by SEBI and the RBI.