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The Union Cabinet has recently approved the foreign shareholding limit from 5% to 15% in Indian Stock Exchanges for a stock exchange, depository, banking company, insurance company and commodity derivative exchange. Apart from this, the Cabinet has also approved the proposal to allow foreign portfolio investors to acquire shares through initial allotment, besides secondary market, in the stock exchanges. This move will help in increasing global competitiveness of Indian stock exchanges by accelerating/facilitating the adoption of latest technology and global best practices which will lead to overall growth and development of the Indian Capital Market.