The RBI Monday directed FPIs to obtain necessary approvals from the government and concurrence from the investee companies when their equity holdings go beyond the prescribed limits and they reclassify the holdings as FDI.

India's central bank on Monday released an operational framework for reclassifying equity investments made by foreign portfolio investors (FPI) that exceed the prescribed limit as foreign direct investment (FDI).

The Reserve Bank of India (RBI) has streamlined the process for Foreign Portfolio Investors (FPIs) to reclassify their holdings as Foreign Direct Investment (FDI) if their stake in an Indian company exceeds 10 percent.

The Reserve Bank of India (RBI) has introduced a new framework that allows foreign portfolio investments (FPIs) to be reclassified as foreign direct investments (FDI) if they exceed a 10% ownership threshold in an Indian company.

The FPI concerned should obtain the necessary approvals from the government, including approvals required in case of investment from land bordering countries and ensure that the acquisition beyond prescribed limit is made in accordance with the provisions applicable for FDI,

RBI introduces operational framework for reclassifying foreign portfolio investments as foreign direct investment if holdings exceed the permissible limit, effective immediately.