RBI clears 49 pc FDI in stock exchanges

Mumbai, Dec 22: The Reserve Bank of India (RBI) today said it will allow up to 49 per cent foreign investment in stock exchanges, depositories and clearing corporations.

Under the new rules, foreign direct investment (FDI) will be limited at 26 per cent, while foreign portfolio investments will be capped at 23 per cent, RBI said.

Portfolio investments will be allowed through purchases in the secondary market. All investments must have the approval of Foreign Investment Promotion Board, the release added.

UNI