Mumbai, July 24 -- The proposal sparked concerns among investors that the tighter foreign ownership cap could reduce Swiggy's investability for global equity indices such as MSCI and FTSE. Analysts warned the move could result in lower index weightings or exclusion, potentially triggering passive fund outflows estimated at about $460 million.

The proposed cap, subject to shareholder approval at the company's Annual General Meeting on 18 August, is aimed at helping Swiggy qualify as an Indian Owned and Controlled Company (IOCC) under foreign exchange regulations.

Achieving IOCC status would allow Swiggy to directly own and sell inventory through its quick commerce business Instamart, enabling it to shift Instamart from a marketplace mode...