With the new operational framework for reclassifying foreign portfolio investors (FPI) as foreign direct investment (FDI) upon breaching the 10 per cent threshold, certain overseas funds are set to get more flexibility in their India investments, experts said.
There are around 17 companies listed on the National Stock Exchange (NSE) where a single FPI has holdings of up to 9 per cent, according to data provided by Primeinfobase. A majority of these are based out of popular jurisdiction destinations such as Mauritius and Singapore.
These investors, if they wish to take their holdings above 10 per cent in an investee company, will now also have the option to either divest stake or reclassify as FDI upon approval from the government.
"This relaxation meets one of the demands of certain funds which want to take a higher exposure in Indian companies especially mid-caps where the 10 per cent limit became restrictive. The enabling framework can now be implemented because the operational process has been specified," said Rajesh Gandhi, partner, Deloitte.
Denne historien er fra November 14, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra November 14, 2024-utgaven av Business Standard.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
EVALUATING FUND PERFORMANCE Exit a fund only if underperformance persists for 8 quarters
During her annual portfolio review, Mignonne D'Souza (name changed on request), a 44-year-old content writer based in Mumbai, found that four of her seven mutual funds had outperformed, while three lagged behind their benchmarks. D'Souza is wondering if she should stick to these funds or exit them.
Zomato serves up mcap bigger than Tata Motors, Bajaj
Stock could be a 'potential doubler in three to four years'
'PARRVA' introduced for verification of risk-return metrics
In a bid to clamp down on individuals and entities making lofty return claims, the Securities and Exchange Board of India (Sebi) has introduced a \"Past Risk and Return Verification Agency\" (PaRRVA), which will be tasked to verify the risk-return metrics of services offered by investment advisors, research analysts (RAS), algorithmic trading platforms, and other such entities.
Regulator brings in new rule to address NFO mis-selling
The Securities and Exchange Board of India (Sebi) has introduced a new rule aimed at putting a stop to unnecessary portfolio churn by distributors to pocket higher commissions, amid rising asset mobilisation through the new fund offer (NFO) route.
Core acquisition adds to Metropolis' long-term growth plans
Metropolis Healthcare (MHL) has decided to acquire a 100 per cent stake in Gurgaon-based Core Diagnostics for ₹247 crore.
Euro Pratik eyes ₹700-1,000 cr public offer
Euro Pratik, a prominent player in the decorative wall panel industry, is set to file draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) worth ₹700-1,000 crore, sources familiar with the matter said on Thursday.
Nifty may trade in 25K-28K range in 2025: Smallcase
The benchmark Nifty50 index may move in the range 25,000-28,000 next year, according to a survey conducted by Smallcase of 150 managers on its investment platform. The Nifty on Thursday closed at 23,951.
IKS Health surges 48% on debut
BOOSTER DOSE
Moderate return expectations for '25: HDFC Securities
Domestic brokerage HDFC Securities has told investors to moderate return expectations amidst elevated valuations.
Expensive valuations to keep mkts volatile
Domestic equities have seen selloff this week amid weakening rupee
