BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which organisation has withdrew the 20% limit on investments by FPIs in corporate bonds of an entity with a view to encourage more foreign investments recently?

A	IRDAI
B	SEBI
C	RBI
D	TRAI

Explanation:

Detailed explanation-1: -FOCC stands for Foreign Owned or Controlled Companies. It refers to those Indian companies or entities which are controlled by non-residents or foreign companies or multinational corporations (hereinafter referred to as “parent company”).

Detailed explanation-2: -The investment limit under the VRR is increased to ₹2, 50, 000 crore from ₹1, 50, 000 crore. The updated Directions are as given in the Annex. 5. These Directions shall be applicable with effect from April 1, 2022.

Detailed explanation-3: -Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provisions of the Foreign Exchange Management Act (FEMA) 1999. Reserve Bank of India has issued Notification No. FEMA 20/2000-RB dated May 3, 2000 which contains the Regulations in this regard.

There is 1 question to complete.