INSUBCONTINENT EXCLUSIVE:
Authors: JordanAll listed Indian firms are required to provide specified data on foreign investment to the depositories.
In order to enable listed Indian companies to ensure compliance
with the various foreign investment limits, Reserve Bank Of India (RBI) in consultation with Securities and Exchange Board of India (Sebi),
has decided to put in place a new system for monitoring foreign investment limits, for which the necessary infrastructure and systems for
operationalising the monitoring mechanism, shall be made available by the depositories -- Central Depository Services and National
Securities Depository Limited
All listed Indian companies are required to provide the specified data on foreign investment to the depositories
will not be able to receive foreign investment and will be non-compliant with Foreign Exchange Management Act, 1999 (FEMA) and regulations
made thereunder, said RBI.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.Upon implementation of the new
monitoring system, all authorised dealer banks 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
