FOREIGN STAKE CAPPED AT 49%
The finance ministry has decided to cap foreign investment in depositories and clearing corporations of stock exchanges at 49%. This will include 26% Foreign Direct Investment (FDI) and 23% Foreign
Institutional Investment. Further, foreign institutional investors would not be permitted representation
on the boards of such institutions. Only foreign investors with long-term objectives (strategic partners bringing in FDI) would be allowed board seats commensurate with their holdings. Bourses, depositories and clearing corporations are being seen as infrastructure institutions of the financial market.
Institutional Investment. Further, foreign institutional investors would not be permitted representation
on the boards of such institutions. Only foreign investors with long-term objectives (strategic partners bringing in FDI) would be allowed board seats commensurate with their holdings. Bourses, depositories and clearing corporations are being seen as infrastructure institutions of the financial market.
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