RBI asks listed firms to provide FPI data to depositories by May 15

The Reserve Bank today asked all listed companies to provide information on FPI investments to depositories before May 15 or else they will be barred from receiving foreign investments.

Currently, the RBI receives data on investment made by foreign portfolio investors (FPIs) and non-resident Indians (NRIs) on stock exchanges from banks, based on which restrictions beyond a threshold limit is imposed on such investments in listed Indian companies.

In order to enable listed companies to ensure compliance with various foreign investment limits, the RBI in consultation with market regulator SEBI has decided to put in place a new system for monitoring foreign investment limits.

Depositories have to provide the necessary infrastructure and systems for operationalising the monitoring mechanism.

The Securities and Exchange Board of India (SEBI) has already issued notification in this regard.

As per SEBI circular, all listed Indian companies are required to provide the specified data/ information on foreign investment to the depositories.

The requisite information may be provided before May 15, 2018, said a RBI notification.

"The listed Indian companies, in non-compliance with the above instructions, will not be able to receive foreign investment and will be non-compliant with Foreign Exchange Management Act, 1999 (FEMA) and regulations made thereunder," it added.

Further, upon implementation of the new monitoring system, the RBI said all banks concerned would be required to provide the details of investment made by their respective NRI clients to the depositories in the format as provided by the depositories/ SEBI.