BIS central bankers’ speeches  5  Apart from direct investment, non-residents can acquire equity stakes through portfolio investment as well. Portfolio investment could be made by the entities which are registered with the SEBI as Foreign Institutional Investors (FIIs). FIIs do not need prior approval as long as they are within the sectoral and individual limits.
There are no restrictions on repatriation of equity investments. With regard to debt flows, policy levers comprise both quantity and price based prudential prescriptions. There is a ceiling on the extent of FII investment in sovereign debt (US $ 15 billion) and corporate debt (US $ 45 billion) and there is also a withholding tax.