SEBI Issues Updated Procedure for Reclassifying FPI Investments to FDI
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- Last Updated on 13 November, 2024
Circular No. SEBI/HO/AFD/AFD-POD-3/P/CIR/2024/152; Dated: 11.11.2024
SEBI has issued an updated procedure for reclassifying FPI investments to FDI. It states that if an investment made by a foreign portfolio investor reaches 10% or more of the total paid-up equity capital of a company on a fully diluted basis & FPI intends to reclassify its FPI holdings as FDI, it must follow extant FEMA Rules and circulars. On receiving intent from FPI, the Custodian must report it to SEBI and freeze FPI’s purchase transactions of the company’s equity till the completion of reclassification.
Click Here To Read The Full Circular
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