Cabinet okays FDI hike in exchanges to 15% for individual cos

Cabinet has approved the hike in foreign direct investment (FDI) limit for individual companies in domestic stock and commodity exchanges to 15 percent from 5 percent. Several single foreign entities with close to 4.75 percent have been waiting for a chance to increase their stake particularly in the Multi Commodity Exchange of India (MCX). This decision is going to encourage large global commodity exchanges who have earlier shied away from investing in India due to the low cap for an individual company.The cabinet has also allowed foreign portfolio investors to acquire shares through initial allotment in Indian stock exchanges.The decision is aimed at attracting more foreign inflows in stock exchanges like BSE and the National Stock Exchange.(With inputs from PTI)