हिन्दी ಕನ್ನಡ മലയാളം தமிழ் తెలుగు

FIIs can invest in commodity exchanges without prior approval: RBI

Posted by:
Published: Wednesday, May 9, 2012, 10:21 [IST]
 
Share this on your social network:
   Facebook Twitter Google+    Comments Mail

FII can invest in commodity exchanges without prior approval

The Reserve Bank of India (RBI) on Tuesday said that foreign institutional investors (FIIs) can now invest up to limit of 23% in commodity exchanges without seeking prior approval from the government.

However, prior approval of the Foreign Investment Promotion Board (FIPB) would be required only for FDI component and Government approval would not be required for investment by registered FIIs in commodity exchanges, RBI said in the notification.

As per rules, India allows FII investment in commodity exchanges, with a composite ceiling of 49% with FDI limit of 26% and FII limit of 23% under Portfolio Investment Scheme (PIS).

Under the existing policy, ‘leasing and finance’ is one of the 18 NBFC activities wherein FDI up to 100% is permitted under automatic route, subject to minimum capitalisation norms.

RBI said that now foreign direct investment is permitted only in 'financial leases' (financial leasing activity) and not in 'operating leases' (operating leasing activity).

GoodReturns.in

Topics: rbi, fii, investment
Write Comments

Please read our comments policy before posting

Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
Goodreturns iPad App
Goodreturns iPad App
Download GoodReturns iPad App and enjoy it. Learn more about Oneindia GoodReturns on the App Store.
Download Goodreturns iPad App