Clubbing of investment limits: foreign government-linked investors' holdings must be combined, with supervisory reporting and mandated divestment or conversion. Foreign Governments and related FPIs are subject to a ten percent cap per company, with entities treated as an investor group and their holdings clubbed where common beneficial owners hold more than fifty percent across FPIs; beneficial ownership is determined under Rule 9 of the PMLA Rules. DDPs must ascertain group status at registration, FPIs must disclose investor group information, and custodians/depositories (via NSDL) monitor aggregate holdings. Breaches require divestment within five trading days or conversion to FDI upon immediate notice to SEBI and RBI.
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Provisions expressly mentioned in the judgment/order text.
Clubbing of investment limits: foreign government-linked investors' holdings must be combined, with supervisory reporting and mandated divestment or conversion.
Foreign Governments and related FPIs are subject to a ten percent cap per company, with entities treated as an investor group and their holdings clubbed where common beneficial owners hold more than fifty percent across FPIs; beneficial ownership is determined under Rule 9 of the PMLA Rules. DDPs must ascertain group status at registration, FPIs must disclose investor group information, and custodians/depositories (via NSDL) monitor aggregate holdings. Breaches require divestment within five trading days or conversion to FDI upon immediate notice to SEBI and RBI.
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