RBI bans portfolio buying by OCBs
Mumbai: Reserve Bank of India on Thursday banned overseas corporate bodies from making fresh investments under the portfolio investment scheme in the equity market. OCBs can now participate in the primary market (or preferential allotments) and make equity investments through the foreign direct investment route.

However, NRIs can still invest in the secondary market in their individual capacity.

OCBs would continue to enjoy the facilities of opening non-resident accounts (with commercial banks) and making direct investments as permitted so far.

The joint parliamentary committee investigating the stock market scam had told the RBI to look into OCB transactions routed through banks and to plug loopholes in the present norms, which allowed this practice.
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