Skip to main content

RBI asks listed firms to provide FPI data to depositories by May 15

By
RBI asks listed firms to provide FPI data to depositories by May 15
Currently, the RBI receives data on investment made by foreign portfolio investors (FPIs) and non-resident Indians (NRIs) on stock exchanges from banks, based on which restrictions beyond a threshold limit is imposed on such investments in listed Indian companies
The Reserve Bank today asked all listed companies to provide information on FPI investments to depositories before May 15 or else they will be barred from receiving foreign investments.Currently, the RBI receives data on investment made by foreign portfolio investors (FPIs) and non-resident Indians (NRIs) on stock exchanges from banks, based on which restrictions beyond a threshold limit is imposed on such investments in listed Indian companies.
In order to enable listed companies to ensure compliance with various foreign investment limits, the RBI in consultation with market regulator SEBI has decided to put in place a new system for monitoring foreign investment limits.Depositories have to provide the necessary infrastructure and systems for operationalising the monitoring mechanism.As per SEBI circular, all listed Indian companies are required to provide the specified data/ information on foreign investment to the depositories.
The requisite information may be provided before May 15, 2018, said a RBI notification."The listed Indian companies, in non-compliance with the above instructions, will not be able to receive foreign investment and will be non-compliant with Foreign Exchange Management Act, 1999 (FEMA) and regulations made thereunder," it added.
Further, upon implementation of the new monitoring system, the RBI said all banks concerned would be required to provide the details of investment made by their respective NRI clients to the depositories in the format as provided by the depositories/ SEBI.
The Money Control, New Delhi, 04th May 2018

Comments

Post a Comment

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

GST collection for November rises by 8.5% to Rs.1.82 trillion

By
  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...
Post a Comment
Read more