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.
For the current list of companies under RBI's caution or ban, please click here.