The Reserve Bank of India (RBI) on May 22nd, 2020, issued a circular revising the “Voluntary Retention Scheme” for Foreign Portfolio Investors (FPIs). The RBI vide its circular dated May 24th 2019 revised its circular on Voluntary Retention Scheme for FPIs in order for FPIs to invest at least 75% of their committed portfolio size within three months from the date of allotment. However, due to the disruption because of the lockdown caused by COVID-19, the RBI again revised the circular on the Voluntary Retention Scheme for FPIs. The RBI has allowed FPIs who have been allotted investment limits between January 24th 2020 i.e. the date of opening of the allotment and April 30th 2020, shall be given an additional time of three months to invest 75% of their committed portfolio size. Those who wish to avail of an additional timeline, the retention period for their investment shall be reset to start from the date that the FPI invests 75% of committed portfolio size.
The Hon’ble National Company Law Appellate Tribunal,New Delhi, in its recent judgment in Ahluwalia Contracts (India) Limited v. Raheja Developers Limited dated July 23, 2019,