In a move that will enable foreign governments to make more investments in Indian stocks, capital market regulator Sebi has allowed them to buy to a maximum of 20 per cent stake in any listed company without any additional obligations. The proposed threshold of 20 per cent is twice the current limit of 10 per cent, beyond which sovereign wealth funds, or investment arms of foreign governments need to make an open offer for buying any additional stake.
Sebi, which will grant any such approval on case-by-case basis, has also sought changes in the relevant central government regulations about foreign investments, said a senior official.
A proposal to this effect was approved at a Sebi board meeting on March 25 and the new guidelines would be announced soon, he added.
