MSCI will implement changes in Foreign Ownership Limits (FOL) in the MSCI Global Indexes containing Indian securities coinciding with the November 2020 Semi Annual Index Review (SAIR) at the close of November 30, 2020, effective December 1, 2020. The FOL changes are resulting from the relaxation of the Foreign Portfolio Investor (FPI) limit of Indian companies to the sectoral limit.
The FOL for securities in the MSCI India Equity Universe would be equal to the limit as per the 'Automatic Route' except:
- The cases where a higher limit is approved under the 'Government Route' or
- The cases where a lower limit is approved by the company's Board of Directors and its General Body
MSCI will review the Number of Shares (NOS) and the free float as per the cutoff dates and triggers in section 3.1.9, 3.2.4 and 3.2.5 of the Global Investable Market Indexes (GIMI) methodology and MSCI will not conduct an additional review of the free float for securities only subject to the FOL changes.