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Overseas investors, including foreign portfolio investors
The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling.
The Reserve Bank of India (RBI) on Thursday said overseas investors, including foreign portfolio investors (FPIs) and non-resident Indians (NRIs), can invest up to 26 per cent in insurance and allied activities through the automatic route.

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The ceiling for overall investment for FIIs is 24 per cent of the paid up capital of the Indian company and 10 per cent for NRIs/PIOs. The limit is 20 per cent of the paid up capital in the case of public sector banks, including the State Bank of India.

The ceiling of 24 per cent for FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect. And the ceiling of 10 per cent for NRIs/PIOs can be raised to 24 per cent subject to the approval of the general body of the company passing a resolution to that effect.
In order to participate in the FPI investment route, the overseas investor is required to obtain registration as an FPI with the Indian designated custodians. The key eligibility criteria for registration are:
Authorized by its constitutive document(s) to invest on its own behalf or on behalf of its clients
Legally permitted to invest in securities outside the country of incorporation/ place of business
It is not an opaque structure
Not resident in India and not a non-resident Indian
Track record, professional competence, financial soundness, experience, general reputation of fairness and integrity
Is a fit and proper person as defined under SEBI (Intermediaries) Regulations, 2008
Jurisdiction test: Investors must be resident in jurisdictions that are:
Signatory to IOSCO MMOU / SEBI MOU or (in case of banks) central bank to be member of BIS
Not listed in FATF public statements as
having a strategic AML/ Combating the Financing of Terrorism deficiency to which counter measures apply; or
insufficient progress in addressing deficiencies or not committed to action plan developed with FATF to address it

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