Union Cabinet increases limit for foreign investment in Stock Exchanges from 5% to 15%
Free Current Affairs to Your Email
Posted on:29 Jul 2016 09:12:51
29 July 2016 Current Affairs: The Union Cabinet has given its approval for raising foreign shareholding limit from current 5% to 15% in Indian Stock Exchanges. The decision brings the investment limit of foreign entities at par with that of domestic institutions.
This enhanced limit is for a stock exchange, depository, banking company, insurance company and commodity derivative exchange. Additionally, the Union Cabinet also gave its approval for foreign portfolio investors to acquire shares through initial allotment, besides secondary market, in the stock exchanges.
Implications : Enhance global competitiveness of Indian stock exchanges. Enable Indian stock exchanges to acquire and adopt latest technology and global best practices. Pave way for better overall growth and development of the Indian capital market
The Union Cabinet approval is in pursuance of implementation of the 2016-17 Budget Announcement made by the Union Finance Minister Arun Jaitley. Finance Minister had made this announcement with regard to reforms in FDI Policy in order to enhance investment limit for foreign entities in Indian stock exchanges from 5% to 15%.
FreshersLive - No.1 Job site in India. Fresherslive Current Affairs 2017 section offers informative quiz questions with answers regarding latest current affairs today for all sorts of competitive exams like UPSC, TNPSC , IFS, IAS, IPS, railway exams (RRB) and banking exams like IPBS PO, IPBS clerk, Federal Bank PO, ICICI, SBI, RBI legal officer & Grade officer posts and much more. Register with us to get latest Current Affairs Updates. Also get latest Current Affairs news and quiz Updates for free alerts daily through E-mail