FDI rules reset in the offing

“A UNIFORM, THRESHOLD-based regime applicable to both listed and unlisted companies would be more consistent with international practice and economic logic,’ said MS Sahoo, founder of DrSahoo Regulatory Chambers and former wholetime member of Sebi.

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He added that such a system could be complemented by controlbased tests in closely held firms to address cases where influence exceeds shareholding.“Such a framework would enhance clarity, reduce regulatory arbitrage, and better align classification with economic reality,’ he said.

Mayank Arora, director-policy at Nangia Global, noted that the 10% benchmark already has regulatory acceptance.“The 10% threshold to classify an investment has regulatory backing from Sebi as well, which restricts FP] investment in any one listed entity to below 10%,” he said. He added that policymakers may also consider whether classification should depend more on investment intent than pure percentage thresholds.