Foreign investment limits in commodity exchanges: deadline extended for divestment; non-compliance treated as FEMA violation. Guidelines reaffirm a composite foreign investment ceiling for commodity exchanges with specified allocations between portfolio and direct investment and a restriction on any single foreign investor's equity share. Existing exchanges exceeding the prescribed foreign share must divest the excess and were granted an extended transition period to comply. All commodity exchanges must submit a compliance report disclosing foreign investment and equity structure to specified government departments and regulators. Non-compliance after the deadline will constitute a violation under the Foreign Exchange Management Act.
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Provisions expressly mentioned in the judgment/order text.
Foreign investment limits in commodity exchanges: deadline extended for divestment; non-compliance treated as FEMA violation.
Guidelines reaffirm a composite foreign investment ceiling for commodity exchanges with specified allocations between portfolio and direct investment and a restriction on any single foreign investor's equity share. Existing exchanges exceeding the prescribed foreign share must divest the excess and were granted an extended transition period to comply. All commodity exchanges must submit a compliance report disclosing foreign investment and equity structure to specified government departments and regulators. Non-compliance after the deadline will constitute a violation under the Foreign Exchange Management Act.
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