Union Cabinet Increases Limit for Foreign Investment in Stock Exchanges from 5% to 15% [ Current Affairs ]
Union Cabinet has given its approval for raising foreign shareholding limit from current 5 % to 15 % in Indian Stock Exchanges. Decision carries the investment limit of foreign units at par with that of domestic organization.
- This enriched limit is for a stock exchange, depository, banking company, insurance company, and commodity derivative exchange.
- In addition, the Union Cabinet also gave its approval for foreign portfolio investors to acquire shares through initial allotment, besides secondary market, in the stock exchanges.
- Enhance global competitiveness of Indian stock exchanges. Enable Indian stock exchanges to acquire and adopt latest technology and global best practices.
- Development of a strong financial services market in India.
- The investors from the onslaught of jobbers and brokers, and ensure better tax compliance to pave the wayfor regulation, growth and development of financial services,
- Union Cabinet approval is in pursuance of implementation of the 2016 - 17 Budget Announcement made by the Union Finance Minister Arun Jaitley.
- Finance Minister had made this announcement with respect to reforms in FDI Policy in order to improve investment limit for foreign entities in Indian stock exchanges from 5 % to 15%.
- Published on: July 28, 2016