MANU/APDR/0013/2018

Ministry : Reserve Bank of India

Department/Board : RBI A.P. DIR (Series)

Circular No. : A. P. (DIR Series) Circular No. 27 [(1)/20(R)]
                   RBI/2017-2018/172

Date : 03.05.2018

Notification/ Circulars Referred : Notification No. FEMA 20(R)/2017-RB dated November 07, 2017 MANU/RFEM/0009/2017;SEBI vide Circular-IMD/FPIC/CIR/P/2018/61 dated April 05, 2018 MANU/SFII/0001/2018;Circular- IMD/FPIC/CIR/P/2018/74 dated April 27, 2018 MANU/SIPM/0010/2018

Citing Reference:
Notification No. FEMA 20(R)/2017-RB dated November 07, 2017 MANU/RFEM/0009/2017  Referred

SEBI vide Circular-IMD/FPIC/CIR/P/2018/61 dated April 05, 2018 MANU/SFII/0001/2018  Referred

Circular- IMD/FPIC/CIR/P/2018/74 dated April 27, 2018 MANU/SIPM/0010/2018  Referred

To

All Category - I Authorised Dealer Banks

Madam/ Sir

Monitoring of foreign investment limits in listed Indian companies

1. Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Foreign Exchange Management (Transfer or Issue of Security by a person Resident outside India) Regulations, 2017 notified vide Notification No. FEMA 20(R)/2017-RB dated November 07, 2017 and as amended from time to time, in terms of which the onus of compliance with the sectoral/ statutory caps on foreign investment lies with the Indian investee company.

2. Currently, Reserve Bank of India receives data on investment made by Foreign Portfolio Investors (FPI) and Non-resident Indians (NRI) on stock exchanges from the custodian banks and Authorised Dealer Banks for their respective clients, based on which restrictions beyond a threshold limit is imposed on FPI/ NRI investment in listed Indian companies.

3. In order to enable listed Indian companies to ensure compliance with the various f........