The Reserve Bank of India (RBI) said foreign institutional investors (FIIs) can invest up to the permitted limit of 23 per cent in commodity stock exchanges without prior approval of the government.
However, prior clearance from the Foreign Investment Promotion Board (FIPB) is required for foreign direct investment (FDI) in such exchanges.
“It has been decided that prior approval of the government (FIPB) would be required only for FDI component and government approval would not be required for investment by registered FIIs in commodity exchanges,” the RBI said in a notification.
India allows foreign investment in commodity exchanges, with a composite ceiling of 49 per cent with FDI limit of 26 per cent and FII limit of 23 per cent under Portfolio Investment Scheme (PIS).
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks