FIPB approval sought for NRI participation

Tata Consultancy Services (TCS) has applied to the Foreign Investment Promotion Board (FIPB) seeking permission to allow non-resident Indians (NRIs) to participate in the mega issue.

When contacted, a TCS spokesperson said, "There is a huge demand from NRIs. Ours being a domestic listing, we wanted to be sure that the government permission is in place."

While the company does not require an FIPB approval for investment by foreign institutional investors (FIIs) registered in India, the move to seek FIPB permission for NRI investment is seen as "pre-emptive" in nature. NRIs can participate as Indians in TCS Ltd's domestic issue, the spokesperson said.

According to Sebi guidelines, 60 per cent of the offering is for qualified institutional buyers including FIIs, Indian institutions and mutual funds, 15 per cent for high networth individuals (HNIs) with an investment of over Rs 50,000 and the balance 25 per cent for retail investors with an investment of up to Rs 50,000.

Prithvi Haldea of IPO-tracker Prime Database said that NRIs can participate in domestic issues under both the categories of retail and HNIs.

"NRIs have Indian passports and are treated as domestic investors," he said.