Future Retail: RBI relaxes FPI cap

The Reserve Bank of India on Monday notified that foreign portfolio investors can now invest up to 49 per cent of the paid-up capital in Future Retail (FRL) under the portfolio investment scheme, against the earlier cap of 24 per cent. FPIs currently hold 17.02 per cent stake in the company. FRL had passed necessary resolutions through its board of directors and general body meetings as required under FEMA, 1999, and the regulations framed thereunder, the RBI notice said, and added, the increase is subject to Regulation 5(2) of FEMA.