Question

What is the maximum percentage of the paid-up capital of an Indian company that SEBI registered FIIs and its sub-accounts can acquire?

a.

10%

b.

15%

c.

24%

d.

5%

Posted under IC 89 Management Accounting

Answer: (c).24% Explanation:SEBI registered FIIs and its sub-accounts can acquire up to 10% of the paid-up capital of the Indian company. However, in the case of foreign corporate or High Net-worth Individuals (HNIs) registered as sub-accounts of an FII, their investment is restricted to 5% of the paid-up capital of the Indian company. All FIIs and their sub-accounts taken together cannot acquire more than 24% of the paid-up capital of an Indian Company.

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Q. What is the maximum percentage of the paid-up capital of an Indian company that SEBI registered FIIs and its sub-accounts can acquire?
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