ARTICLE · 19 NOVEMBER 2024

AKP Banking & Finance Digest- November 18, 2024

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RBI has introduced an operational framework for the reclassification of Foreign Portfolio Investments ("FPI") to Foreign Direct Investment

IndiaFinance and Banking

1. Regulatory Updates

1.1. India

1.1.1. New framework for FPI to FDI reclassification

RBI has introduced an operational framework for the reclassification of Foreign Portfolio Investments ("FPI") to Foreign Direct Investment ("FDI") for investments exceeding the 10 per cent (ten per cent) equity limit. Effective immediately, AD Category-I banks will facilitate the reclassification process, provided the FPI meets government approval and sectoral guidelines. The reclassification must be completed within five trading days, and once completed, the investment will be treated as FDI, subject to all FDI regulations. RBI

1.1.2. RBI updates list of domestic systemically important banks

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