The Union Cabinet chaired by the Prime Minister Narendra Modi has given approval for raising foreign shareholding limit from 5% to 15% in Indian Stock Exchanges.
This is enhanced limit is for a stock exchange, a banking company, a depository, an insurance company and a commodity derivative exchange.
The Cabinet has also approved the proposal to allow foreign portfolio investors to acquire shares through initial allotment, besides secondary market, in the stock exchanges.
The move will help in enhancing global competitiveness of Indian stock exchanges by accelerating and facilitating the adoption of latest technology, says the government.
According to the experts, this global best practices which will lead to overall growth and development of the Indian Capital Market.