The Reserve Bank of India (RBI) on November 11, 2024, issued a notification regarding the Operational framework for the reclassification of Foreign Portfolio Investment to Foreign Direct Investment (FDI) under Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
The following has been stated: -
•RBI in consultation with the Government of India and SEBI, has finalized an operational framework for reclassifying Foreign Portfolio Investments (FPI) to Foreign Direct Investment (FDI) under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
•This reclassification will apply in cases where FPIs breach investment limits. The new framework aims to enhance the ease of doing business in India.
The detailed notification is given in the document below.
[Press Release: 2024-2025/1475]
