<h1>India to Redefine FDI and FII; New 10% Ownership Threshold Introduced, Merging FII and QFI Regimes.</h1> The Government of India has accepted a committee's report to rationalize the definitions of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII). The report suggests classifying foreign investments into Portfolio Investors and FDI Investors, with a 10% ownership threshold distinguishing the two. It recommends merging the FII and Qualified Foreign Investors regimes into a new Foreign Portfolio Investors regime, regulated by SEBI and RBI. The report proposes that investments below 10% can be treated as FDI if increased within a year. It emphasizes the special status of Non-Resident Indian investors and suggests treating their non-repatriable investments as domestic.