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Can Zomato s existing foreign investors subscribe to its IPO: Banks to RBI, Sebi

Can Zomato s existing foreign investors subscribe to its IPO: Banks to RBI, Sebi Illustration: Rahul Awasthi Synopsis 2019 rule says a foreign resident cannot invest in a company’s shares via both FDI and FPI routes Mumbai: In the run-up to the Zomato IPO, several banks have approached Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) to figure out whether existing foreign investors in the company can participate in the maiden equity offering. Multiple overseas investors in Zomato, who are keen to subscribe to the Rs 8,250 crore IPO, are grappling with a regulatory question thanks to a 2019 rule which on a plain reading means

Can Zomato s existing foreign investors subscribe to IPO? Banks ask RBI, Sebi

Can Zomato s existing foreign investors subscribe to IPO? Banks ask RBI, Sebi Illustration: Rahul Awasthi Synopsis Multiple overseas investors in Zomato, who are keen to subscribe to the Rs 8,250 crore IPO, are grappling with a regulatory question thanks to a 2019 rule which on a plain reading means that a foreign investor cannot invest in shares of the same company through both the foreign direct investment (FDI) and foreign portfolio investment (FPI) routes. While subscribing to an IPO, they have to take the FPI route. The question is can they do both? Mumbai: In the run-up to the Zomato IPO, several banks have approached Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) to figure out whether existing foreign investors in the company can participate in the maiden equity offering.

CG Power case delays Aditya Birla Sun Life s IPO by at least 3 months

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