FDI in Commodity Exchanges require FIPB approval & No Prior Approval is needed for FII investment in Commodity Exchanges under PIS
FDI IN COMMODITY EXCHANGES REQUIRE FIPB APPROVAL & NO PRIOR APPROVAL IS NEEDED FOR FII INVESTMENT IN COMMODITY EXCHANGES UNDER PIS
Para 2 of A.P (DIR Series) Circular No.41 dated April 28, 2008, which allowed foreign investment in commodity exchanges, subject to a composite (FDI & FII) ceiling of 49 per cent with FDI limit of 26 per cent and FII limit of 23 per cent under Portfolio Investment Scheme (PIS), subject to conditions stated therein.
2. The extant policy for foreign investment in commodity exchanges, has since been reviewed and 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. All other conditions contained in A.P (DIR Series) Circular No.41 dated April 28, 2008 shall remain unchanged.
Ref-RBI/2011-12/542 A. P. (DIR Series) Circular No.121 dated 8 May 2012
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