Stocks

Depositories revise FPI limits for stocks

PTI New Delhi | Updated on April 03, 2020 Published on April 03, 2020

Depositories on Friday revised foreign portfolio investment (FPI) limits for stocks listed on domestic stock exchanges.

With this, FPI limit in some stocks has climbed up to 100 per cent, market sources said.

Besides, in some stocks FPI limits have been increased to their respective sectoral caps, they added.

Under SEBI norms, depositories monitor the foreign investment limits in listed Indian companies.

While the raising of FPI limits for stocks to respective sectoral caps by NSDL/CDSL is welcome, the current sentiments of FPI towards emerging market equities is not very conducive so as to attract flows just on the basis of this relaxation by depositories, said Deepak Jasani, Head Retail Research, HDFC Securities.

MSCI, on March 31, had said that it would wait for the practical implementation of these changes and the systematic implementation of the new sectoral limits applicable to Indian securities before making any changes to the MSCI index.

It had said that it would provide further communication on this before June 30, 2020.

Hence funds that do not follow MSCI Indexes, and are willing to bet more on India under the current circumstances, will be able to invest more in select Indian stocks based on relaxed limits, Jasani said.

However, funds that follow MSCI Indexes would have to wait till at least June 30 or once the Ministry of Finance notifies these fresh limits after companies have been given time, beyond the original March 31, 2020, to restrict their FPI limits to a lower threshold, he added.

Published on April 03, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.