Question

    According to recent RBI and SEBI guidelines, what must

    foreign portfolio investors (FPIs) do if their equity holdings exceed prescribed limits?
    A Withdraw from the Indian market within 10 days Correct Answer Incorrect Answer
    B Obtain government approval and the investee company's consent Correct Answer Incorrect Answer
    C Convert excess equity holdings into bonds Correct Answer Incorrect Answer
    D Transfer excess holdings to local investors Correct Answer Incorrect Answer
    E Invest only in low-risk securities Correct Answer Incorrect Answer

    Solution

    FPIs must secure government approval and the consent of the investee company if their equity holdings exceed specified limits, ensuring compliance with regulatory norms.

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