India May Exempt Saudi Sovereign Fund From FPI Rules

India has agreed to exempt Saudi Arabia's sovereign wealth fund from a set of foreign portfolio investment rules to attract capital flows and strengthen financial ties between the two nations, two people aware of the matter said.

- Reuters

NEW DELHI:

The rules, which club investments through various sovereign entities together and cap it at 10% in a single company, have prevented different subsidiaries of the fund from investing more in India, they said.

Prime Minister Narendra Modi visited the Gulf nation in April, when both countries agreed to promote investment in energy, infrastructure and pharmaceuticals. India is also negotiating a bilateral investment treaty with Saudi Arabia.