SEBI allows foreign investors to buy shares via primary routes
Published: Feb 17, 2017
By TIOLCORP News Service
MUMBAI, FEB 17, 2017: MARKETS regulator Securities and Exchange Board of India (Sebi) has allowed foreign investors to acquire shares through primary markets in depositories and clearing corporations. Prior to this, foreign investors could acquire shares of depositories and clearing corporations only through a secondary market.
The move comes at a time when Central Depository Services Limited (CDSL) is preparing to launch its initial public offering.
As per norms, total foreign holding in depositories and clearing corporations is capped at 49 per cent. Sebi has now amended Stock Exchanges and Clearing Corporations regulations as well as Depositories and Participants norms, to drop a provision that required the purchase of shares by foreign investors within 49 per cent limit only through secondary markets.
The amended regulations provide that a foreign stock exchange, foreign depository, foreign banking company, foreign insurance company, and a foreign commodity derivatives exchange, may acquire or hold, either directly or indirectly, either individually or together with persons acting in concert, upto fifteen per cent of the paid up equity share capital of a recognised stock exchange.
