TaxTMI 
TaxTMI 
Investments by Foreign Portfolio Investors
X X X X Extracts X X X X
X X X X Extracts X X X X
....up value of each series of debentures or preference shares or share warrants issued by an Indian company and the total holdings of all FPIs put together, including any other direct and indirect foreign investments in the Indian company ^1[by FPIs] permitted under these rules, shall not exceed 24 per cent of paid-up equity capital on a fully diluted basis or paid up value of each series of debentures or preference shares or share warrants. The said limit of 10 percent and 24 percent shall be called the individual and aggregate limit, respectively. ^5[Provided that total holding of a foreign portfolio investor under schedule II, III or any other schedule of these rules, including through an investor group under this schedule, in a li....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... General Body through a resolution and a special resolution, respectively: Provided also that once the aggregate limit has been increased to a higher threshold, the Indian company cannot reduce the same to a lower threshold: Provided also that the aggregate limit with respect to an Indian company in a sector where FDI is prohibited shall be 24 per cent. ^4[Explanation, - In case two or more FPI's including foreign Governments or their related entities are having common ownership, directly or indirectly, of more than fifty percent or common control, all such FPI's shall be treated as forming part of an investor group.] ^3[The FPIs investing in breach of the prescribed limit shall have the option of divesti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such clubbing requirements and other investment conditions either by way of an agreement or treaty with other sovereign governments or by an order of the Central Government. (v) A FPI may purchase equity instruments of an Indian company through public offer or private placement, subject to the individual and aggregate limits specified under this Schedule: Provided that - (A) in case of public offer, the price of the shares to be issued is not less than the price at which shares are issued to residents, and (B) in case of issue by private placement, the price is not less than- (a) the price arrived in terms of guidelines issued by the Securities and Exchange Board of India, or (b) the fair price worked ou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and other attendant conditions for remittance of sale or maturity proceeds shall be specified by the Reserve Bank. ******************* NOTES:- 1. Inserted vide Notification No. S.O. 4355(E). dated 05-12-2019 w.e.f. 17-10-2019 2. Inserted vide Notification No. S.O. 4355(E). dated 05-12-2019 w.e.f. 17-10-2019 3. Substituted vide Notification No. S.O. 1374(E) dated 27-04-2020 w.e.f. 27-04-2020 before it was read as, "(iii) The FPIs investing in breach of the prescribed limit shall have the option of divesting their holdings within 5 trading days from the date of settlement of the trades causing the breach. In case the FPI chooses not to divest, then the entire investment in the com....