Current Affairs-Date

Current Affairs-Topics

PYQ & Syllabus

All Mock Test

SSC CGL

NABARD

Insurance

RBI Assistant

SSC CHSL

IBPS PO

SBI PO

CAPF

Current Affairs-Topics

RBI Unveils New Framework for FPI to FDI Conversion

The Reserve Bank of India (RBI) has introduced a new framework for Foreign Direct Investment (FDI) conversion for Foreign Private Institutions (FPIs).

Regulatory Framework & Timeline

RBI introduced operational framework allowing FPIs to reclassify investments as FDI
FPIs must complete reclassification within 5 trading days of breaching 10% Equity threshold
Framework effective from November 2024, complementing SEBI's May 2024 guidelines
Conversion mandatory when FPI holdings exceed 10% of company's paid-up equity
Process requires both government approval and investee company's consent

Compliance & Restrictions

FPIs must report under Foreign Exchange Management Regulations 2019

Custodians required to:

- Notify SEBI of the breach
- Freeze further equity transactions until reclassification
- Transfer securities from FPI demat account to FDI account
Reclassification prohibited in sectors with FDI restrictions
Once converted to FDI, investment remains classified as FDI even if holdings fall below 10%
Special approvals needed for investments from land-bordering countries

Impact & Expert Insights

Enhances ease of doing business in India
Provides flexibility for FPIs to transition to strategic, long-term investments

May affect tax implications:

- Tax Deducted at Source (TDS) applicable on post-reclassification sales
- Different tax treatment for reclassified investments
Experts view it as a positive move for foreign investment climate
Creates structured pathway for FPIs to maintain investments beyond threshold
Maintains regulatory oversight while offering operational flexibility

China EV Export Market Share

In recent years, China's EV export market share has grown exponentially, positioning the country as the global leader in the electric vehicle (EV) industry. According to the Global EV Outlook

Reliance and Nifty50

It is crucial to have knowledge of economic subjects like Nifty50 in order to do well on SSC exams. Nifty50 is an indicator that tracks the stock market performance of the top 50 companies listed

Kallapu-Sajipa Riverfront Road Project

When it comes to building new infrastructure, Karnataka is in the forefront. There are a lot of big initiatives in the state that are boosting the economy and making things more accessible.

India's Manufacturing Vision 2025

India's manufacturing policies have recently gained significant attention as the government seeks to strengthen the country's industrial sector and achieve long-term economic growth. Th

What Drives the Gold Price Rs 1 Lakh?

Gold prices in India have surged to an all-time high, surpassing the Rs 1 Lakh mark per 10 grams for the first time. This significant rise in the Gold Price of Rs 1 Lakh is linked to various g

India’s GDP Growth Rate Falls to 6.4%

Fitch has revised its 2025 GDP forecast for India from 6.6% to 6.4%, a decrease of 10 basis points. This is the most recent global economic news. While this may not seem like a major drop, it’

Boosting Opportunities in the Gig Economy

India is witnessing a quiet revolution in how employment is created. The announcement of 12 lakh jobs in India by 2025 is a huge step toward redefining the gig and logistics economy. With

Nirmala Sitharaman Presents the 2024-25 Economic Survey – An In-Depth Analysis

The Economic Survey 2024-25 emphasizes India's consistent economic growth, forecasting a 6.4% GDP increase in FY25. Key highlights include controlled inflation, robust trade performanc

MoMSME Unveils TEAM Initiative to Enhance Digital Presence of MSMEs in India

The Ministry of Micro, Small, and Medium Enterprises (MoMSME) has introduced the MSME Trade Enablement and Marketing (TEAM) Initiative, a pioneering initiative designed to strengthen the d

Union Budget 2025: Understanding the Concept of 'Bahi Khata'

The ‘bahi khata’ is a traditional Indian ledger employed for accounting and maintaining records. It is typically a bound book, often covered in cloth, used to track financial t

Toppers

Current Affairs-Date

Current Affairs-Topics

PYQ & Syllabus

Current Affairs-Topics

RBI Unveils New Framework for FPI to FDI Conversion

Needs Help !

Preparing for UPSC or State PSCs ?