The Economic Times
RBI allows FIIs to increase stake in Ess Dee Aluminium to 100%
Edited by : AL CIRCLE
2 min read
Reserve Bank today allowed foreign institutional investors (FIIs) to increase stake in Ess Dee Aluminium up to 100 per cent and up to 24 per cent by NRIs.
"...Ess Dee Aluminium Ltd. has passed resolutions to enhance the limit for purchase of its equity shares and convertible debentures by FIIs through primary market and stock exchanges up to 100 per cent and by NRIs/PIOs up to 24 per cent of its paid up capital, under the Portfolio Investment Scheme (PIS)," RBI said in a notification.
FIIs, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect.
In a separate notification, RBI said also allowed the FIIs to raise their stake in Kajaria Ceramics to 40 per cent. "RBI today notified that Kajaria Ceramics...to enhance the limit for purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges, under the PIS up to 40 per cent of its paid up capital."
The foreign share holding by FIIs in Kajaria Ceramics have gone below the revised threshold limit stipulated under the extant FDI Policy, RBI said.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect."
As per BSE data, FIIs had stake of 24.25 per cent in Kajaria till November 11, 2013.
"...Ess Dee Aluminium Ltd. has passed resolutions to enhance the limit for purchase of its equity shares and convertible debentures by FIIs through primary market and stock exchanges up to 100 per cent and by NRIs/PIOs up to 24 per cent of its paid up capital, under the Portfolio Investment Scheme (PIS)," RBI said in a notification.
FIIs, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS).
Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
FII investment can be raised up to sectoral cap/statutory ceiling, subject to the approval of the board and the general body of the company passing a special resolution to that effect.
In a separate notification, RBI said also allowed the FIIs to raise their stake in Kajaria Ceramics to 40 per cent. "RBI today notified that Kajaria Ceramics...to enhance the limit for purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges, under the PIS up to 40 per cent of its paid up capital."
The foreign share holding by FIIs in Kajaria Ceramics have gone below the revised threshold limit stipulated under the extant FDI Policy, RBI said.
"Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect."
As per BSE data, FIIs had stake of 24.25 per cent in Kajaria till November 11, 2013.
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