FPI/FII Equity Investment Limits Explained

Foreign Portfolio Investors (FPI) and Foreign Institutional Investors (FII) are key players in the equity markets. Regulatory bodies set limits on their investment percentages in the issued and paid-up capital of companies to ensure market stability and prevent excessive foreign control.

Key Investment Threshold

• The specific percentage limit set for FPIs and FIIs to invest and trade in the equity securities of a company is crucial for understanding foreign participation levels.
• This limit dictates the maximum stake these foreign investors can collectively hold.
• According to regulations, the prescribed limit for combined FPI and FII investment in a company's equity capital is 24\%.

Conclusion

Therefore, the percentage limit for Foreign Portfolio Investors and Foreign Institutional Investors to invest and trade in the equity securities of a company's issued and paid-up capital is 24 percent.