Govt's move to push FDI via stock exchanges fails to yield results

In 2016, govt increased ceiling of foreign shareholding to 15% from 10%; none has availed of the benefit

The central government’s move to allow higher foreign direct investment (FDI) in Indian stock exchanges has failed to take off. In 2016, it notified rules allowing a foreign entity to hold up to 15 per cent in an exchange. Earlier, this was capped at 10 per cent. However, none has come to avail the extra legroom.

Industry players say this is because it still allows only portfolio investment and does not provide any extra privilege such as control. Also, foreign exchanges have preferred to play the India stock exchange growth story through the non-equity route, including product tie-ups.

The Centre