Prior to this, foreign investors could acquire shares of depositories and clearing corporations only through secondary market.
The move comes at a time when Central Depository Services Limited (CDSL) is preparing to launch its initial public offering.
As per norms, total foreign holding in depositories and clearing corporations is capped at 49 per cent.
The Securities and Exchange Board of India (Sebi) has now amended Stock Exchanges and Clearing Corporations regulations as well as Depositories and Participants norms, to drop a provision that required purchase of shares by foreign investors within 49 per cent limit only through secondary markets.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)