https://www.taxtmi.com/article/detailed?id=13183 The RBI framework allows FPIs who breach portfolio investment caps to divest or reclassify holdings as FDI within five trading days of settlement. Reclassification is prohibited where FDI is barred and requires investee company concurrence and any applicable government approvals. The FPI must notify its custodian, which will freeze purchase transactions until reclassification concludes; failure to secure approvals leads to compulsory divestment. Reporting obligations include Form FC-GPR for fresh issuances and Form FC-TRS for secondary market acquisitions. The breach date is the effective date, the entire holding is treated as FDI post-reclassification, and the FPI with its investor group is treated as a single entity. en-us Fri, 06 Dec 2024 10:40:24 +0530 Fri, 06 Dec 2024 15:40:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=13183 The RBI framework allows FPIs who breach portfolio investment caps to divest or reclassify holdings as FDI within five trading days of settlement. Reclassification is prohibited where FDI is barred and requires investee company concurrence and any applicable government approvals. The FPI must notify its custodian, which will freeze purchase transactions until reclassification concludes; failure to secure approvals leads to compulsory divestment. Reporting obligations include Form FC-GPR for fresh issuances and Form FC-TRS for secondary market acquisitions. The breach date is the effective date, the entire holding is treated as FDI post-reclassification, and the FPI with its investor group is treated as a single entity. Articles FEMA - Foreign Exchange Management Fri, 06 Dec 2024 10:40:24 +0530 https://www.taxtmi.com/article/detailed?id=13183