Clubbing Provisions

Investment made by multiple FPIs having common beneficial ownership of > 50% (directly or indirectly) or common control is clubbed for calculating investment limits. FPIs belonging to the same investor group are clubbed for investment limit calculations. Depositories ensure combined holdings remain under 10% of a company’s total paid-up equity (on a fully diluted basis). Custodians inform FPIs to divest the excess holding within five trading days from the date of settlement of the trades resulting in the breach or confirm to treat FPI/FPI group investment into a company as FDI based on pre-notification.

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