SEBI

New System for Monitoring Foreign Investment Limits in listed Indian companies-SEBI

New System for Monitoring Foreign Investment Limits in listed Indian companies

IMD/FPIC/CIR/P/2018/61

April 05 , 2018

1. All Foreign Portfolio Investors ( through their designated Custodian of Securities)

2. The Depositories (NSDL and CDSL)

3. The Stock Exchanges (BSE , NSE and MSEI)

Dear Sir / Madam,

Sub: Monitoring of Foreign Investment limits in listed Indian companies

1. Foreign Investment in India is regulated in terms of clause (b) of sub-section 3 of section 6 and section 47 of the Foreign Exchange Management Act, 1999 (FEMA) read with Foreign Exchange Management (Transfer or Issue of a Security by a Person resident Outside India) Regulations, 2017 issued vide Notification FEMA 20(R)/2017 -RB dated November 7, 2017. FEMA prescribes the various foreign investmen t limits in listed Indian companies . These include the aggregate FPI limit, the aggregate NRI limit and the sectoral cap. The RBI Master Direction (FED Master Direction No . 11/2017-18) dated Janua ry 04, 2018 provides a compilation of the instructions issued on Foreign Investment in India and its related aspects under FEMA.

2. As per FEMA, the onus of compliance with the various foreign investment limits rests on the Indian company. In order to facilitate the listed Indian companies to ensure compliance with the various foreign investment limits, SEBI in consultation with RBI has decided to put in place a new system for monito ring the foreign investment limits.The architecture of the new system has been explained in Annexure A

3. The depositories (NSDL and CDSL) shall put in place the necessary infrastructure and IT systems for operationalizing the monitoring mechanism described at Annexure A. The Stock Exchanges (BSE, NSE and MSEI) shall also put in place the necessary infrastructure and IT systems for disseminating information on the available investment head room in respect of listed Indian companies.

4. The depositories shall issue the necessary circulars and guidelines for collecting data on foreign investment from listed companies. The system for collecting this data from the companies shall go live on the date of the issuance of this circular. The companies shall provide the necessary data (details of which have been mentioned in Annexure A) to the depositories latest by April 30, 2018.

5. The new system for monitoring foreign investment limits in listed Indian companies shall be made operational on May 01, 2018. The existing mechanism for monitoring the foreign investment limits shall be done away with once the new system is operationalized . RBI shall issue the necessary guidelines in this regard.

Th is circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992.

A copy of this circular is available at the web page “Circulars” on our website www.sebi.gov. in. Custodians are requested to bring the contents of this circular to the notice of their FPI clients.

Yours faithfully,

ACHAL SINGH
Deputy General Manager
Tel No.: 022-26449619
Email: achals@sebi.gov.in

Annexure A-Architecture of the System for Monitoring Foreign Investment Limits in listed Indian companies Click Here >>

Empanelment of ICAI Exam observer for January 2027 Examinations. Last date: 20.11.2026

Empanelment to act as ICAI exam observers for January 2027 CA Examination. Last date to apply is 20.11.2026 Empanelment of…

7 hours ago

No arrest under GST- Major decision of 57th Meeting of GST Council held on 8th October 2026

No arrest under GST- Major decision taken in 57th Meeting of the GST Council on 8th October 2026 PRESS RELEASE…

2 days ago

Income Tax

Later SC ruling cannot render an act done in compliance of a court order a statutory default

A subsequent Apex Court ruling on the substantive issue cannot retrospectively make an act done in compliance of a binding…

3 days ago

Income Tax

Interest payment on mobilisation advance to NHAI not liable to TDS u/s 194A

Interest payment on mobilisation advance to NHAI not liable for deduction of tax at source u/s 194A - ITAT Interest…

3 days ago

Income Tax

Typographical error in turnover accepted during assessment not a mistake apparent from record

Typographical error in turnover declared in ITR was not as a mistake apparent from the record u/s 154 when AO…

5 days ago

Income Tax

Plea that assessee was not aware of order cannot be brushed aside in absence of proof of service

Ground taken by assessee that he was not aware of the order cannot be brushed aside so lightly in absence…