Which of the following statements are correct regarding the RBI’s new framework for converting FPI holdings to FDI?
- The framework allows FPIs to convert their investments into FDI if their holdings exceed the 10% equity threshold in Indian companies.
- FPIs must reclassify excess shares within 10 trading days under the new framework.
- The framework ensures compliance with the Foreign Exchange Management Act (FEMA) and sectoral FDI caps.
1
Only 1 and 2
2
Only 2 and 3
3
All of the above
4
Only 1 and 3
5
None of the above