INSUBCONTINENT EXCLUSIVE:
announcement of increasing the statutory foreign portfolio investment limit in a company from 24 per cent to sectoral foreign investment
March 31, 2020, to reduce the FPI limit through an approval of the board of directors and a special resolution passed by shareholders
limit increases, it cannot be reduced
Thus, unless companies pass board and shareholder resolutions, all companies in India will irreversibly have their FPI limit at the sector
compared to its market cap and GDP rank because of high promoter holdings and low foreign investment limits which has constrained active and
passive allocations to India from abroad.
Larsen - Toubro, Asian Paints, Bajaj Finserv, Bajaj Finance, Britannia, Tata Steel, Bharti
Infratel, Titan, Bajaj Auto, Tech Mahindra and Divi's Laboratories are among the stocks that are likely to see the most increase in
weightage given the subsuming of foreign limits.
Among the public sector stocks in the MSCI India index, NTPC, Power Grid, HPCL, Petronet
LNG, Container Corporation and REC could see an increase in weight.
Kotak Mahindra Bank, Bajaj Holdings, United Breweries, Power Finance
Corporation, Biocon, Indraprastha Gas, ACC and MRF are the large-cap stocks in the BSE 200 index that could be included from the subsuming