The Reserve Bank of India has clarified that Inter-Foreign Institutional Investors (FII) transactions do not require either prior approval or post-facto confirmation of the Reserve Bank of India, as such transactions do not affect the percentage of overall FII holdings in Indian companies. Inter-FII transactions will, however, not be permitted in the scrips where the FII holdings has crossed the overall limit due to any reason.

The Reserve Bank had earlier issued a press release that transactions amongst FIIs will no longer require post-facto confirmation of the Reserve Bank and that such transactions are only to be reported by the designated banks to the Reserve Bank in the normal course.