Fundamental Glossary / Shareholding & Ownership
Foreign Ownership
Every share held by non-residents, across FPI, FDI, depository receipts, and foreign promoter categories.
Formula
Foreign shares / total shares. Sectoral caps apply under FDI policy and SEBI rules.
What it means
Foreign ownership is wider than FPI holding. A foreign parent that is the promoter is foreign ownership and is not an FPI trade.
Sectoral caps limit how much foreign ownership some industries can have. Near a cap, further foreign buying is constrained, which can affect the premium between local shares and depository receipts.
How to read it
A high foreign ownership shares the register with global risk appetite. It also means global investors have already found the stock, so the "undiscovered" story is weaker.
What to watch
Caps, approvals, and the difference between paid-up capital and the cap base change the headroom. Use the company's own foreign-ownership disclosure rather than adding vendor categories by hand.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.