The Reserve Bank of India on Monday issued an operational framework for reclassification of investment made by a foreign portfolio investor to foreign direct investment (FDI) if the entity breaches the prescribed limit. Currently, an investment made by foreign portfolio investor along with its investor group (FPI) should be less than 10 per cent of the total paid-up equity capital on a fully diluted basis. Any FPI investing in breach of the prescribed limit has the option of divesting their holdings or reclassifying such holdings as FDI subject to the conditions specified by the RBI and Sebi within five trading days from the date of settlement of the trades causing the breach. The RBI has issued an operational framework for reclassification of foreign portfolio investment by FPI to FDI. As per the framework, the FPI concerned will have to take necessary approvals from the government and concurrence of the Indian investee company concerned. However, the facility of reclassification