Reclassification of FPI investment: custodians must report intent, freeze purchases, and permit transfer only after required RBI reporting is complete. Procedure requires an FPI (with its investor group) reaching ten percent or more of a company's fully diluted paid-up equity to follow FEMA rules to reclassify as FDI; upon notice the custodian must report to the Board and freeze purchase transactions until reclassification completes, and custodians shall transfer securities from FPI demat accounts to FDI demat accounts only after RBI-prescribed reporting for reclassification is complete.
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Reclassification of FPI investment: custodians must report intent, freeze purchases, and permit transfer only after required RBI reporting is complete.
Procedure requires an FPI (with its investor group) reaching ten percent or more of a company's fully diluted paid-up equity to follow FEMA rules to reclassify as FDI; upon notice the custodian must report to the Board and freeze purchase transactions until reclassification completes, and custodians shall transfer securities from FPI demat accounts to FDI demat accounts only after RBI-prescribed reporting for reclassification is complete.
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