Fema tweaks on the cards to allow FPIs to seamlessly access FDI route

This move comes in response to several requests from foreign investors seeking to simplify the reporting requirements they currently face when exceeding the 10 per cent threshold

The government is planning to introduce legislative changes to the Foreign Exchange Management Act (Fema) regulations, with a focus on easing the pathway for inflows from a foreign portfolio investor to transition seamlessly into foreign direct investments (FDI) once the FPI surpasses the 10 per cent ownership threshold in a company.

This move stems from multiple requests by foreign investors seeking to streamline the reporting requirements that arise when their stakes in Indian firms cross the 10 per cent mark.

“Currently, Fema has ‘watertight regulations’ that restrict an FPI from buying more than 10 per cent as