Tuesday, October 15, 2013

RBI eases rules for foreign and NRI promoters to raise stake in listed firms

Offshore parents of such local companies can now freely purchase shares by using the services
of registered Indian brokers. Such acquisition of shares can also be funded with dividend amounts
paid by Indian companies to these non-resident promoters. The new rule will apply to all non-
resident entities, including non-resident Indians (NRIs). The central bank opened another door to encourage inflows by adding all nonresident promoters to the list.


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