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Serial numbers F.4 to F.7 of the sectoral Table in Schedule I to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 cover four kinds of financial market institution: infrastructure companies in the securities market, commodities spot exchanges, power exchanges and credit information companies. Three are capped at 49% and one is open in full, all on the automatic route. The Rules are made under clauses (aa) and (ab) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999.
This article states the position as per the Rules notified on 17 October 2019 (S.O. 3732(E)) as amended by the notifications named in this article; the latest amendment consulted is S.O. 4870(E) dated 2 September 2026. Later amendments, press notes and sector regulators' conditions should be checked before acting. For a stake in a market institution, see our FEMA advisory service.
Stock exchanges, commodity derivative exchanges, depositories and clearing corporations: 49%, automatic route, in compliance with SEBI regulations. Commodities spot exchanges: 49%, automatic route. Power exchanges: 49%, automatic route, and no person resident outside India, with persons acting in concert, should hold more than 5 percent. Credit information companies: hundred per cent, automatic route, with regulatory clearance from the Reserve Bank; a single FPI entity must hold below 10 percent and report any acquisition in excess of 1 percent.
The entries as the Table prints them
| Serial number | Sector or activity | Sectoral cap | Entry route |
|---|---|---|---|
| F.4 | Infrastructure Companies in the Securities Market (heading) | - | - |
| F.4.1 | Infrastructure companies in Securities Markets, namely, stock exchanges, commodity derivative exchanges, depositories and clearing corporations, in compliance with Securities and Exchange Board of India Regulations | 49% | Automatic |
| F.4.2 | Other conditions (a), (b) | - | - |
| F.5 | Commodities Spot Exchange | 49% | Automatic |
| F.5.1 | Investment shall be subject to guidelines prescribed by the Central or State Government | - | - |
| F.6 | Power Exchanges under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010 | 49% | Automatic |
| F.6.1 | Other conditions (a), (b) | - | - |
| F.7 | Credit Information Companies | Hundred per cent | Automatic |
| F.7.1 | Other conditions (a), (b) | - | - |
The Table prints the cap for serial number F.7 as a percentage figure; it is written in words throughout this article.
Amendments. Serial numbers F.4 to F.7 stand as notified on 17 October 2019; none of the 19 amending notifications up to 2 September 2026 changes them.
Serial number F.4: securities market infrastructure
The entry names four kinds of institution: stock exchanges, commodity derivative exchanges, depositories and clearing corporations. The words "in compliance with Securities and Exchange Board of India Regulations" are part of the activity cell itself.
Conditions in F.4.2.
- (a) Foreign investment, including investment by FPIs, is subject to the Guidelines or Rules or Regulations issued by the Central Government, the Securities and Exchange Board of India and the Reserve Bank from time to time.
- (b) Words and expressions used in the entry and not defined in the Rules, but defined in the Companies Act, 2013, the Securities Contracts (Regulation) Act, 1956, the Securities and Exchange Board of India Act, 1992, the Depositories Act, 1996 or in the concerned SEBI regulations, have the meanings assigned to them in those Acts or regulations.
The cap of 49% is a limit on total foreign investment. The SEBI regulations the entry refers to are named by the Table and are not set out in the Rules; an investor has to comply with them as well as with the cap.
Serial number F.5: commodities spot exchange
The entry is short: cap 49%, route automatic, and one line of condition, that investment shall be subject to guidelines prescribed by the Central or State Government. The Table does not define a commodities spot exchange, and it does not identify the guidelines.
Serial number F.6: power exchanges
The activity cell reads: Power Exchanges under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010. The cap is 49% and the route automatic.
Conditions in F.6.1.
- (a) A person resident outside India, including persons acting in concert, should not hold more than 5 percent.
- (b) The investment shall be in compliance with Securities and Exchange Board of India Regulations, other applicable laws, rules and regulations, security and other conditionalities.
So two limits apply together: total foreign investment within 49%, and each foreign holder (with those acting in concert) within 5 percent.
Serial number F.7: credit information companies
The cap is hundred per cent and the route automatic.
Conditions in F.7.1.
- (a) Foreign investment in credit information companies is subject to the Credit Information Companies (Regulation) Act, 2005 and regulatory clearance from the Reserve Bank.
- (b) FPI investment is permitted subject to three conditions:
- (i) a single entity shall directly or indirectly hold below 10 percent equity;
- (ii) any acquisition in excess of 1 percent shall have to be reported to the Reserve Bank as a mandatory requirement; and
- (iii) FPIs investing in credit information companies shall not seek a representation on the Board of Directors based upon their shareholding.
The automatic route means no prior approval of the Reserve Bank or the Central Government under the Rules; condition (a) separately requires the Reserve Bank's regulatory clearance under the sector's own law. The two are distinct requirements.
The four entries compared
| Point | Securities market infrastructure | Commodities spot exchange | Power exchange | Credit information company |
|---|---|---|---|---|
| Cap | 49% | 49% | 49% | Hundred per cent |
| Route | Automatic | Automatic | Automatic | Automatic |
| Per-holder limit printed in the Table | None printed; SEBI regulations apply | None printed | 5 percent for a person resident outside India with persons acting in concert | Below 10 percent for a single FPI entity |
| Regulator or law named | SEBI, Central Government, Reserve Bank | Central or State Government guidelines | CERC (Power Market) Regulations, 2010; SEBI regulations | Credit Information Companies (Regulation) Act, 2005; Reserve Bank |
How these caps interact with foreign portfolio investment is covered in our article on FPI individual and aggregate limits under Schedule II; the routes are in automatic route and Government route.
A worked example
Three foreign investors look at Indian market institutions.
- Thornbury Exchange Group wants 20% of Bharat Clearing Corporation Limited. Serial number F.4.1 caps total foreign investment at 49% on the automatic route. Thornbury must also meet whatever the SEBI regulations for clearing corporations require of a shareholder.
- Elmstead Energy Markets BV wants 8% of Vidyut Power Exchange Limited. The cap of 49% is not the binding limit here: condition F.6.1(a) says a person resident outside India, with persons acting in concert, should not hold more than 5 percent. Elmstead's plan exceeds that.
- Carrow Data Inc wants all the shares of Vishwas Credit Information Company Private Limited. Serial number F.7 permits hundred per cent on the automatic route, subject to the 2005 Act and regulatory clearance from the Reserve Bank. A foreign portfolio investor buying into the same company must stay below 10 percent, report any acquisition above 1 percent to the Reserve Bank and not seek a board seat on the strength of its shareholding.
Need help with an investment in a market institution?
The Table gives the overall cap, and the sector regulator's own regulations sit beside it. Our FEMA advisory team sets out the Schedule I position and flags the regulator's clearances that go with it.
Key takeaways
- Stock exchanges, commodity derivative exchanges, depositories and clearing corporations: 49%, automatic route.
- Commodities spot exchanges: 49%, automatic route, subject to Central or State Government guidelines.
- Power exchanges: 49%, automatic route, with a 5 percent ceiling per foreign holder including persons acting in concert.
- Credit information companies: hundred per cent, automatic route, with Reserve Bank regulatory clearance.
- FPIs in credit information companies: below 10 percent for a single entity, reporting above 1 percent, no board representation based on shareholding.
- None of the 19 amending notifications changes these entries.
Read next
- Serial numbers F.1 to F.3 of the Table: banks and asset reconstruction companies
- Serial numbers F.9 to F.11 of the Table: pension, other financial services and white label ATMs
- Schedule I paragraph 3(b): sectoral caps, investing companies and joint audit
- FDI sectoral caps: an overview chart
Disclaimer: Based on the Gazette text of the instrument this article names, as notified and as amended by the notifications named in the article (for the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 the latest amendment consulted is S.O. 4870(E) dated 2 September 2026), as consulted on 2 October 2026. There is no official consolidated text; the provisions were read with each amendment applied. Sectoral caps, entry routes, conditions, forms and time limits change by notification, press note and circular; later changes should be checked on the Gazette, DPIIT and Reserve Bank sites. This article is general information, not legal advice; check the official text before acting.