Regulations
Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
The ceiling for overall investment for FIIs is 24 per cent of the paid up capital of the Indian company and 10 per centfor NRIs/PIOs. The limit is 20 per cent of the paid up capital in the case of public sector banks, including the State Bank of India.
The ceiling of 24 per cent for FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect. And the ceiling of 10 per cent for NRIs/PIOs can be raised to 24 per cent subject to the approval of the general body of the company passing a resolution to that effect.
The ceiling for FIIs is independent of the ceiling of 10/24 per cent for NRIs/PIOs.
The equity shares and convertible debentures of the companies within the prescribed ceilings are available for purchase under PIS subject to:
– the total purchase of all NRIs/PIOs both, on repatriation and non-repatriation basis, being within an overall ceiling limit of (a) 24 per cent of the company’s total paid up equity capital and (b) 24 per cent of the total paid up value of each series of convertible debenture; and
– the investment made on repatriation basis by any single NRI/PIO in the equity shares and convertible debentures not exceeding five per cent of the paid up equity capital of the company or five per cent of the total paid up value of each series of convertible debentures issued by the company./p>
Monitoring Foreign Investments
The Reserve Bank of India monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. For effective monitoring of foreign investment ceiling limits, the Reserve Bank has fixed cut-off points that are two percentage points lower than the actual ceilings. The cut-off point, for instance, is fixed at 8 per cent for companies in which NRIs/ PIOs can invest up to 10 per cent of the company’s paid up capital. The cut-off limit for companies with 24 per cent ceiling is 22 per cent and for companies with 30 per cent ceiling, is 28 per cent and so on. Similarly, the cut-off limit for public sector banks (including State Bank of India) is 18 per cent.
Once the aggregate net purchases of equity shares of the company by FIIs/NRIs/PIOs reach the cut-off point, which is 2% below the overall limit, the Reserve Bank cautions all designated bank branches so as not to purchase any more equity shares of the respective company on behalf of FIIs/NRIs/PIOs without prior approval of the Reserve Bank. The link offices are then required to intimate the Reserve Bank about the total number and value of equity shares/convertible debentures of the company they propose to buy on behalf of FIIs/NRIs/PIOs. On receipt of such proposals, the Reserve Bank gives clearances on a first-come-first served basis till such investments in companies reach 10 / 24 / 30 / 40/ 49 per cent limit or the sectoral caps/statutory ceilings as applicable. On reaching the aggregate ceiling limit, the Reserve Bank advises all designated bank branches to stop purchases on behalf of their FIIs/NRIs/PIOs clients. The Reserve Bank also informs the general public about the `caution’ and the `stop purchase’ in these companies through a press release.
The current list of companies allowed to attract investments from FIIs/NRIs/PIOs with their respective ceilings is:
List of companies
List of companies which have raised the ceiling from 10% in respect of NRIs investments under PIS (w.e.f. November 29, 2010)
Upto 24%
1 | Alembic Chemical Works Co. Ltd. |
2 | Amar Investments Ltd., Calcutta. |
3 | Anglo- India Jute Mills Co. Ltd. |
4 | Arvind Mills, Ahmedabad. |
5 | Ashima Syntex Ltd, Ahmedabad. |
6 | Ashoka Viniyoga Ltd. |
7 | Bharat Nidhi Ltd. |
8 | BLB Shares & Financial Services Ltd |
9 | BPL Ltd. |
10 | Burr Brown (India) Ltd |
11 | Camac Commercial Company Ltd. |
12 | Ceenik Exports (India) Ltd. |
13 | Cifco Finance Ltd., Mumbai. |
14 | Classic Financial Services & Enterprises Ltd, Calcutta. |
15 | CPPL Ltd, (Reliance Ind. Infrastructure Ltd) Mumbai. |
16 | Crest Communication Ltd. |
17 | CRISIL |
18 | DCM Ltd. |
19 | DCM Shriram Consolidated Ltd. |
20 | Dharani Sugars & Chemicals Ltd |
21 | Dolphin Offshore Enterprises ( I ) Ltd. |
22 | Emco Ltd. |
23 | Essar Oil Ltd. |
24 | Essar Shipping Ltd., B’lore |
25 | Essar Steel Ltd. |
26 | Eveready Industries India Ltd. |
27 | Fabworth (I) Ltd. |
28 | Federal Bank Ltd. |
29 | Ferro Alloys Corporation Ltd., Tumsar. |
30 | Gammon India Ltd |
31 | Grasim Industries Ltd. |
32 | GTL Ltd.(formerly Global Tele-Systems Ltd.) |
33 | GTL Infrastructure Ltd |
34 | Hamco Mining & Smelting Ltd. |
35 | HCL Infosystems Ltd. |
36 | HEG Ltd |
37 | Hindustan Development Corp. Ltd, Calcutta. |
38 | Hindustan Nitroproducts (Gujarat) Ltd. |
39 | Hindustan Transmission Products Ltd., Mumbai |
40 | HMG Industries Ltd., Mumbai. |
41 | Housing Development and Infrastructure Limited |
42 | Indiabulls Real Estate Ltd. |
43 | India bulls Securities Ltd. |
44 | Indiabulls Financial Services Ltd |
45 | Indiabulls Power Limited (formerly Sophia Power Company Limited) |
46 | Igarashi Motors India Ltd |
47 | IVP Ltd |
48 | Jagatjit Industries Ltd, |
49 | Jai Parabolic Springs Ltd. |
50 | Jaysynth Dyechem Ltd. |
51 | Jindal Strips Ltd. |
52 | Jindal Iron & Steel Co. Ltd. |
53 | Jindal Saw Limited (formerly Saw Pipes Limited) |
54 | JJ Spectrum Silk Ltd. |
55 | Kartjikeya Paper & Boards Ltd. |
56 | K Sera Sera Productions Ltd |
57 | Lakhani India Ltd. |
58 | M.P. Agro Fertilisers Ltd., Bhopal. |
59 | Macleod Russel (I) Ltd. |
60 | Matsushita Television and Audio India Ltd. |
61 | Max India Ltd |
62 | Mazda Enterprises Ltd., Mumbai. |
63 | Media Video Ltd. |
64 | Monnet Ispat & Energy Limited |
65 | Multimetals Ltd., Mumbai |
66 | Neha International Limited. |
67 | National Steel Industries Ltd. |
68 | Nicholas Laboratories India Ltd., Mumbai. |
69 | Networth Stock Broking Limited |
70 | Nava Bharat Ventures Limited |
71 | O.P. Electronics Ltd., Mumbai. |
72 | Oriental Housing Development Finance Corp. Ltd. |
73 | Pabacea Biotec Ltd. |
74 | Padmini Technologies Ltd. |
75 | Pearl Polymers Ltd., New Delhi. |
76 | Piramal Healthcare Ltd. |
77 | PNB Finance & Industries Ltd |
78 | Rajath Leasing & Finance Ltd. |
79 | Rajesh Exports Limited |
80 | Rama Petrochemicals Ltd. |
81 | Rama Phosphates Ltd. |
82 | Reliance Industries Ltd., Mumbai. |
83 | Rishra Investment Ltd., Calcutta |
84 | Rossell Industries Ltd., Calcutta. |
85 | Sahu Properties Ltd |
86 | Sanghvi Movers Ltd |
87 | Saurashtra Paper & Board Mills Ltd. |
88 | Sayaji Hotel Ltd. |
89 | SB & T International Ltd |
90 | Sharyans Resources Ltd. |
91 | Shanti Gears Ltd. |
92 | Shibir India Ltd., Calcutta |
93 | Shrenuj & Company Ltd. |
94 | Shriram Industries Enterprises Ltd., N. Delhi. |
95 | Silverline Industries Ltd. |
96 | Sonata Software Ltd. |
97 | SRF Ltd. |
98 | Sterling Lease Finance Ltd., Mumbai. |
99 | Sujana Metal Products Ltd |
100 | Svam Software Ltd. |
101 | Synthetics and Chemicals Ltd., Mumbai. |
102 | Shrenuj & Company Limited |
103 | The Champdany Industries Ltd., Calcutta. |
104 | The Dhanalakshmi Bank Limited |
105 | The Dharamsi Morarji Chemical Co. Ltd . |
106 | The Investment Trust of India Ltd. |
107 | The Morarjee Goculdas Spinning & Weaving Co Ltd, Mumbai. |
108 | Tolani Bulk Carrier Ltd. |
109 | Unitech Limited. |
110 | Uniworth International Ltd. |
111 | Vaibhav Gems Ltd. |
112 | Valecha Engineering Ltd. |
113 | VisualSoft Technologies Ltd. |
114 | Weltermann International Ltd. |
115 | Woolworth (India) Ltd. |
116 | Yes Bank Ltd. |
117 | Zora Pharma Ltd. |
118 | M/s. Redington(India) Ltd.(w.e.f. 29.11.2010) |
119 | M/s. Compuage Infocom Limited (w.e.f. 4.3.2011) |
120 | M/s. Kitex Garments Limited (w.e.f. 8.7.2011) |
121 | M/s Indiabulls Wholesale Services Ltd (w.e.f. 26.08.2011) |
122 | M/s Gitanjali Gems Ltd ( wef 16.09.2011) |
123 | Everonn Education Limited ( w.e.f 6.1.2012) |
124 | Indiabulls Infrastructure and Power Ltd ( w.e.f. 20.1.2012) |
125 | M/s Crew B.O.S. Products Limited (w.e.f. 16-1-2013) |
126 | M/s. Indiabulls Housing Finance Limited(w.e.f.19.03.2013) |
127 | M/s. Shilchar Technologies Limited(w.e.f. 20.03.2013) |
128 | M/s. Parekh Aluminex Limited (w.e.f.16.07.2013) |
129 | M/s. Ess Dee Aluminium Limited (w.e.f. 09.12.2013) |
130 | M/s. Finkurve Financial Services Limited (w.e.f. 13.12.2013) |
131 | M/s. NHC Foods Limited (w.e.f. 07.01.2014) |
132 | M/s. Greycells Education Limited (w.e.f. 11.03.2014) |
133 | M/s. Aurionpro Solutions Limited (w.ef.30.06.2014) |
134 | M/s. Selan Exploration Technology Limited (w.e.f.04.12.2014) |
135 | M/s. Zicom Electronic Security System Limited (w.e.f.19.03.2015) |
136 | M/s. Deccan Gold Mines Ltd (w.e.f.24.03.2015) |
Upto 17%
1 | Garware Shipping Corporation Ltd. |
LIST OF COMPANIES IN WHICH NRI INVESTMENT IS ALLOWED UPTO LIMITS FIXED BY COMPANIES AS INDICATED AGAINST THEIR NAMES
1 | Zen Technologies Limited (4% w.e.f. 13.03.2015) |
2 | Dynamatic Technologies Limited (1% w.e.f. 17.03.2015) |
LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 30% OF THEIR PAID UP CAPITAL UNDER PIS
1 | Asian Paints (India) Ltd |
2 | Capital Trust Ltd |
3 | Divi’s Laboratories Ltd |
4 | Ferro Alloys Corporation Ltd |
5 | Garware Polyester Ltd |
6 | GIVO Ltd (formerly KB & T Ltd) |
7 | Orchid Chemicals and Pharmaceuticals Ltd |
8 | Penta Soft Tec(Pentafour Communications Ltd) |
9 | Polyplex Corporation Ltd |
10 | Ranbaxy Laboratories Ltd |
11 | Shasun Chemicals Ltd |
12 | Sonata Software Ltd |
13 | The Paper Products Ltd |
14 | Vikas WSP Ltd |
15 | Power Grid Corporation of India Limited (w.e.f. 03.02.2014) |
16 | Dabur India Limited (w.e.f. 10.02.2014) |
17 | Oberoi Realty Limited (w.e.f. 20.07.2015) |
18 | The Supreme Industries Limited (w.e.f. 24.09.2015) |
19 | M/s Petronet LNG Limited (w.e.f. 03.11.2015) |
LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 40% OF THEIR Paid Up Capital
LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO 49% OF THEIR Paid Up Capital
LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO LIMITS FIXED BY COMPANIES AS INDICATED AGAINST THEIR NAMES
LIST OF COMPANIES IN WHICH FII INVESTMENT IS ALLOWED UPTO SECTORAL CAP/STATUTORY CEILING OF THEIR PAID UP CAPITAL
LIST OF PRINT MEDIA COMPANIES IN WHICH FDI / FII INVESTMENT IS ALLOWED
1 | Jagran Prakashan -26% |
2 | Deccan Chronicle Holdings Ltd – 24% (FIIs upto 14%) |
3 | IBN 18 Broadcast Ltd.-26% |
Companies in which overall FII ceiling has reached and no further purchases are allowed
Companies falling under 24 %
1 | Panyam Cements and Minerals Industries Ltd. |
2 | Voltamp Transformers Limited(wef 26-09-2012) |
3 | V-Mart Retail Ltd (w.e.f. 25.02.2014) |
Companies falling under 30 %
None
Companies falling under 49% limit
None
Companies where 38% FII limit has been reached and further purchases are allowed with prior approval of RBI.
None
Companies where 28% FII limit has been reached and further purchases are allowed with prior approval of RBI.
1 | Power Grid Corporation of India Limited (w.e.f. 21-11-2014) |
Companies where 22% FII limit has been reached and further purchases will be allowed with prior approval of RBI
Companies where intermediate FII limit has been reached and further purchases will be allowed with prior approval of RBI
None |
Companies in which overall FII ceiling has reached and no further purchases are allowed Companies falling under intermediate ceiling as indicated against their names
1 | IDFC Limited (52.5%). (w.e.f. 21-02-2014) |
Companies in which the Ban limit in respect of maximum permissible foreign holding by FII Investment as stipulated by Government has been reached
None |
Companies where NRI/PIO Investment has already reached 10 % and no further purchases can be allowed
1 | Chandraprabhu Housing Ltd |
2 | Coxswain Technology Ltd (Kaveri Biotech Ltd) |
3 | Dev Sugars Ltd |
4 | Dharendra Industries Ltd |
5 | DSQ Biotech Ltd |
6 | Fintech Communications |
7 | IQMS Software Ltd |
8 | Kakatiya Cement Sugar & Industries Ltd |
9 | SGN Telecom |
10 | SPL Ltd. |
11 | Squared Biotech Ltd |
12 | Goldcrest Finance (India) Limited (w.e.f. 14.11.2011) |
13 | Khodiyar Industries Limited ( w. e. f. 17-09-2012) |
14 | Carnation Industries Limited (w.e.f.13.11.2013) |
15 | Kama Holdings Limited (w.e.f.23.01.2014) |
16 | Samtel India Ltd (w.e.f.05.03.2014) |
17 | Pankaj Pplypack Ltd (name as per BSE website) / Pankaj Polypack Ltd (name as confirmed by the company) (w.e.f.09.07.2014) |
18 | Prajay Engineers Syndicate Ltd (w.e.f.02.09.2014) |
Companies where the NRI investment has reached the trigger point of 8% and further purchases are allowed only with prior permission of RBI
Companies in which the Ban limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investment as stipulated by Government has been reached.
None |
Companies in which the Caution limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investments as stipulated by Government has reached.
None |
Print Media Companies in which the Caution limit in respect of maximum permissible foreign holding including FDI/NRI/PIO/FII Investments as stipulated by Government has reached.
1 | D B Corp Ltd (w.e.f. 10-02-2014) |
Print Media Companies in which the Ban limit in respect of maximum permissible foreign holding including FDI/NRI/PIO/FII Investments as stipulated by Government has reached.
None |
Public Sector banks in which 20% limit has been reached and no further investments are permitted
None |
Public Sector banks in which 18% caution limit has been reached and further purchases by FIIs/NRIs/PIOs are allowed only with prior permission of RBI
1 | Punjab National Bank |
Private Sector Banks in which the Caution limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investments as stipulated by Government has reached
None |
Private Sector Banks in which the Ban limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investments as stipulated by Government has reached
1 | HDFC Bank Ltd (w.ef. 16.12.2013) |
2 | Kotak Mahindra Bank Ltd (w.e.f. 21.04.2015) |
Private Sector Banks in which the Caution limit in respect of FIIs Investment has reached.
None |
Private Sector Banks in which the Ban limit in respect of FIIs Investment has reached 49%.
None |
Further purchases are allowed only with prior permission of RBI. | |
No further purchases are allowed. |
Source :https://rbi.org.in/Scripts/BS_FiiUSer.aspx#Prestige