Securities And Exchange Board Of India - Subsection
Section 20(7) in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019
(7)The purchase of equity shares of each company by a single foreign portfolio investor including its investor group shall be below ten per cent of the total paid-up equity capital on a fully diluted basis of the company:Provided that where the total investment under these regulations by a foreign portfolio investor including its investor group exceeds the threshold of below ten per cent of the total paid up equity capital in a listed or to be listed company on a fully diluted basis, the foreign portfolio investor shall divest the excess holding within five trading days from the date of settlement of the trades resulting in the breach:Provided further that in case the foreign portfolio investor fails to divest the excess holding, the entire investment in the company by such foreign portfolio investor including its investor group shall be considered as investment under the Foreign Direct Investment, as per the procedure specified by the Board and the foreign portfolio investor and its investor group shall not make further portfolio investment in that company under these regulations,Explanation I. - 'investor group' shall have the meaning as provided under regulation 22(3) of these regulations.Explanation II. - 'fully diluted basis' means the total number of shares that would be outstanding if all possible sources of conversion are exercised.
