CURRENT AFFAIRS

Detailed explanation-1: -On 27 July 2016, the Union Cabinet approved the proposal to raise the foreign shareholding limit from 5 per cent to 15 per cent in Indian Stock Exchanges for a stock exchange, a depository, a banking company, an insurance company and a commodity derivative exchange.

Detailed explanation-2: -Such investment would be subject to the following conditions: (i) It would be made under the Government approval route. (ii) The 49% limit will subsume FDI and FII/FPI investment.

Detailed explanation-3: -The revised permissible limit for foreign investment in international mutual funds is to be capped at the levels as of 1st February 2022. What is the aggregate foreign investment limit in international mutual funds? The aggregate foreign investment limit in international mutual funds is US$7 billion.

Detailed explanation-4: -Foreign investment is freely permitted in almost all sectors. Foreign Direct Investments (FDI) can be made under two routes-Automatic Route and Government Route. Under the Automatic Route, the foreign investor or the Indian company does not require any approval from RBI or Government of India for the investment.

Detailed explanation-5: -Answer: The routes under which foreign investment can be made is as under: Automatic Route: Foreign Investment is allowed under the automatic route without prior approval of the Government or the Reserve Bank of India, in all activities/ sectors as specified in the Regulation 16 of FEMA 20 (R).