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.

Any FPI investing in breach of the prescribed limit should have the option of divesting their holdings or reclassifying such holdings as FDI within five trading days from the date of settlement of the trades causing the breach, the RBI notification said.

Financial regulators Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) on Monday directed foreign portfolio investors (FPIs) to obtain necessary approvals from the government and concurrence from the investee companies in cases of acquisition of equity holdings beyond the prescribed limits.

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 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.

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