Go Back   2023 2024 MBA > MBA > Main Forum

  #1  
Old 31st January 2018, 01:25 PM
Unregistered
Guest
 
Default FDI In Indian Bank

I have my account in Indian bank and searching for some details about the Foreign direct investment (FDI) in Indian banks. Will you provide all details related to Foreign direct investment (FDI) and also provide complete details about Voting Rights Of Foreign Investors?
Reply With Quote Quick reply to this message
  #2  
Old 31st January 2018, 01:26 PM
Super Moderator
 
Join Date: Mar 2013
Default Re: FDI In Indian Bank

Indian federal government has opened up the banking sector for foreign investors raising the ceiling of foreign direct investment in the Indian private sector banks to 49 percent

STATUTORY LIMITS


Foreign direct investment (FDI) up to 49 percent is permitted in Indian private sector banks under automatic rout which includes Initial Public Issue (IPO), Private Placements, ADR/GDRs; and Acquisition of shares from existing shareholders.

Automatic route is not applicable to transfer of existing shares in a banking company from residents to non-residents. This category of investors require approval of FIPB, followed by in principle approval by Exchange Control Department (ECD), Reserve Bank of India (RBI).

The fair price for transfer of existing shares is determined by RBI, broadly on the basis of Securities Exchange Board of India (SEBI) guidelines for listed shares and erstwhile CCI guidelines for unlisted shares. After receipt of in principle approval, the resident seller can receive funds and apply to ECD, RBI, for obtaining final permission for transfer of shares.

Foreign banks having branch-presence in India are eligible for FDI in private sector banks subject to the overall cap of 49% with RBI approval.

Issue of fresh shares under automatic route is not available to those foreign investors who have a financial or technical collaboration in the same or allied field. Those who fall under this category would require Foreign Investment Promotion Board (FIPB) approval for FDI in the Indian banking sector.

Under the Insurance Act, the maximum foreign investment in an insurance company has been fixed at 26 percent. Application for foreign investment in banks which have joint venture/subsidiary in insurance sector should be made to RBI. Such applications would be considered by RBI in consultation with Insurance regulatory and Development Authority (IRDA).

FDI and Portfolio Investment in nationalised banks are subject to overall statutory limits of 20 percent.

The 20 percent ceiling would apply in respect of such investments in State Bank of India and its associate banks.

Voting Rights Of Foreign Investors

Private Sector Banks : Not more then 10 percent of the total voting rights of all the shareholders
Nationalised Banks : Not more than 1 percent of the total voting rights of all the shareholders of the nationalised bank.
State Bank of India : Not more than 10 percent of the issued capital. This does not apply to Reserve Bank of India (RBI) as a shareholder. However, government in consultation with RBI, ceiling for foreign investors can be raised.
SBI Associates : Not more than 1 percent. This ceiling will not be applied to State Bank of India. If any person holds more than 200 shares, he/she will not be registered as a shareholder.
Reply With Quote Quick reply to this message
Reply

Similar Threads
Thread Thread Starter Forum Replies Last Post
Is South Indian Bank Is Government Bank Unregistered Main Forum 2 9th April 2018 02:48 PM
Indian Bank Chairman Name Dhanya V.3 Main Forum 2 27th February 2018 03:43 PM
Indian Bank Srirangam Unregistered Main Forum 1 2nd February 2018 03:21 PM
Indian Bank ISA Unregistered Main Forum 1 1st February 2018 03:37 PM
Indian Bank Harur Unregistered Main Forum 1 1st February 2018 01:31 PM
Indian Bank Symbol Unregistered Main Forum 1 31st January 2018 12:55 PM
Indian Bank Vacancies Unregistered Main Forum 1 29th January 2018 11:38 AM
Indian Bank Vacancies Unregistered Main Forum 1 12th November 2015 10:43 AM
List of Indian Bank Unregistered Main Forum 1 9th November 2015 05:41 PM
Indian Bank Application Unregistered Main Forum 1 6th November 2015 06:48 PM
Indian Bank Cut Off Marks For PO Unregistered Main Forum 0 15th July 2015 02:56 PM
Bank Timings South Indian Bank Unregistered Main Forum 0 15th July 2015 01:01 PM
South Indian Bank NRE Max Plus Unregistered Main Forum 0 13th July 2015 09:57 AM
South Indian Bank PPT Unregistered Main Forum 0 8th July 2015 04:00 PM
Indian Bank Logos EPS krishnaprasad4 Main Forum 1 31st January 2013 10:38 AM
Indian Bank Gurgaon ATM Unregistered Main Forum 1 19th January 2013 05:09 PM
Indian Bank ATM in Chenna JKHFGFG Main Forum 0 13th December 2012 05:33 PM
Indian Bank Jobs in uk anup kumar verma Main Forum 2 26th September 2012 10:16 AM
Indian Bank Janakpuri sujata mandal16 Main Forum 1 31st August 2012 03:48 PM
Indian Bank Login shivanikaushal. Main Forum 1 30th August 2012 05:56 PM


Quick Reply
Your Username: Click here to log in

Message:
Options

Thread Tools Search this Thread



All times are GMT +5.5. The time now is 01:02 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO 3.6.0 PL2

1 2