Monitoring of NRI Investment Positions in Indian Companies by RBI

How are NRI investment positions in Indian companies monitored?

The investment positions of Non-Resident Indians (NRIs) and Foreign Institutional Investors (FIIs) in listed Indian companies are diligently monitored by the Reserve Bank of India (RBI). This surveillance is conducted on a daily basis through reports provided by designated banks.

When combined NRI/FII investments are 2 percent below the sector-specific cap, the RBI issues a caution list to designated bank branches, indicating that any further acquisition of shares by NRIs/FIIs in the specified Indian company will require the RBI's prior approval. Once the NRI/FII holdings hit the maximum limit allowed, the RBI places the company on a "Ban List". Subsequently, NRIs are barred from purchasing shares of the company under the Portfolio Investment Scheme.
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For the current list of companies under RBI's caution or ban, please click here.