‘Verification of PAN must in FPI share allotment’

Markets regulator SEBI on Friday said allotment of shares to foreign portfolio investors (FPIs) in initial public offers would need to be verified with PANs to check against any breach of investment limit through multiple entities.

Under the rules, purchase of equity shares of each firm by a single FPI or an investor group would have to be below 10% of the firm’s total issued capital. Registrar and Transfer Agents have been asked to obtain validation from depositories for investing FPIs, to ensure there is no breach of investment limit.

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