RBI likely to double FPI investment cap to 10%

Move aims to boost capital inflows amid heavy foreign outflows

- SHUBHAM BATRA

The Reserve Bank of India (RBI) is set to double to 10 per cent a cap on investment by individual foreign investors in listed companies, as it aims to boost capital inflows, according to two senior government officials and documents reviewed by Reuters.

Foreign portfolio investors (FPIs), pressured by poor earnings, high valuations and prospects of US tariffs, have pulled more than $28 billion out of stocks since September's record high in the benchmark Nifty 50.

To boost foreign investment, India is widening to all foreign investors benefits it had until now restricted to overseas Indians, while also raising applicable investment limits, the officials said.