FI limit in Motherson Sumi increased to 30%

FI limit in Motherson Sumi increased to 30%

The RBI monitors the limit on investments by FII/NRI/PIO in Indian firms on a daily basis.

The Dollar Business Bureau

Reserve Bank of India (RBI) has given its approval to foreign investors to increase their share up to 30 percent in Motherson Sumi Systems Ltd, the flagship company of the Samvardhana Motherson Group. Earlier, the limit was 24 percent.

“Foreign institutional investors (FIIs)/registered foreign portfolio investors (RFPIs) can, under the Portfolio Investment Scheme (PIS), now invest up to 30 percent of the paid up capital of Motherson Sumi Systems Limited,” the central bank said in a notification.

The Board of Directors of the Motherson Sumi Systems had cleared a resolution and a special resolution has been passed by the shareholders agreeing to enhance the purchase limit of company’s equity shares by RFPIs/FIIs.

Through PIS, the FIIs, NRIs and Persons of Indian Origin (PIOs) can do investment in primary as well as secondary capital markets in the country.

The Central Bank monitors the limit on investments by FII/NRI/PIO in Indian firms on a daily basis. The Bank has fixed the cut-off points, 2 percentage points below the actual limit.

Motherson Sumi Systems Limited including its subsidiaries and Joint Ventures is one of the leading makers of wiring harnesses for automobiles, passenger car’s mirrors and a leading provider of plastic modules and components to the automotive sector. 

 

The Dollar Business Bureau - Sep 28, 2016 12:00 IST
 
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