RBI allows 40% foreign investments in Indian auto major

The restriction on the purchase of shares has been withdrawn as the foreign shareholding by FIIs/RFPIs in the Indian auto major has 'gone below the revised threshold limit'

 The Dollar Business Bureau

Overseas investors can now invest up to 40% of the paid up capital of Maruti Suzuki India Limited under the Portfolio Investment Scheme as the Reserve Bank of India (RBI) has removed the cap on the purchase of the company’s shares. “Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs)/Qualified Foreign Investors (QFIs) can now invest up to 40% of the paid up capital of M/s Maruti Suzuki India Limited under the Portfolio Investment Scheme (PIS),” the central bank said in a statement on Monday. The restriction on the purchase of shares of Maruti Suzuki India has been withdrawn as the foreign shareholding by FIIs/RFPIs in the Indian auto major has “gone below the revised threshold limit”. The company has passed resolutions at its board of directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges and would be subject to FEMA norms, the RBI said. Foreign investors including NRIs (Non Resident Indians) and PIOs (Persons of Indian Origin) are allowed to trade in securities through primary and secondary capital markets up to a certain limit under the portfolio investment scheme. Till June 2015, foreign institutional investors (FIIs) held 21.75% in Maruti Suzuki India.  

September 15, 2015 | 01:03pm IST.

The Dollar Business Bureau - Sep 15, 2015 12:00 IST
 
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