Blurring lines between FPI and FDI: Can foreign investors really acquire less than 10% listed stake off market?

The question of what constitutes a ‘foreign direct investment’ on the one hand, and a ‘foreign portfolio investment’ on the other, has been a matter of great debate.

In this paper, we analyze the genesis viz. the legislative intent and the practical application of existing regulatory framework by certain authorized dealer banks and opine on whether a foreign direct investor can acquire less than 10% of a listed entity off-market.