Question

    What happens to an investment reclassified as FDI under

    the new RBI-SEBI rules?
    A It remains FDI even if holdings fall below 10% Correct Answer Incorrect Answer
    B It reverts to FPI status if holdings fall below 10% Correct Answer Incorrect Answer
    C It requires additional government approval for reversal Correct Answer Incorrect Answer
    D It is automatically divested Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Once reclassified, the investment remains as FDI regardless of whether holdings fall below the 10% threshold in the future.

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