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      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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