FIIs, NRIs can buy up to 74 per cent in Dhanalakshmi Bank: RBI

15 Dec 2009

Foreign institutional investors (FIIs) and non-resident Indians (NRIs) can now purchase equity shares of Dhanalakshmi Bank Limited up to sectoral cap of 74 per cent, the Reserve Bank of India said in a notification.

Purchases of shares in Dhanalakshmi Bank can be made under portfolio investment scheme (PIS), through primary/secondary markets and stock exchanges in India, RBI said.

"The purchases can be made up to the total limit of prescribed percentages of the paid-up capital of the company subject to the condition that aggregate foreign investment in the bank should not exceed the composite sectoral cap of 74 per cent and as prescribed by the government from time to time," RBI said.

The board of directors of Dhanalakshmi Bank has passed resolutions to this effect at the annual general meeting of the bank.

Within in the 74 per cent foreign holding limit in the bank, RBI said foreign institutional investors can hold 49 per cent while non-resident Indians can hold 24 per cent of the bank's paid-up capital.

Foreign institutional investors, non-resident Indians and persons of Indian origin 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.

The ceiling for overall investment for FIIs is 24 per cent of the paid-up capital of the Indian company and 10 per cent for NRIs/PIOs. The limit is 20 per cent of the paid-up capital in the case of public sector banks, including the State Bank of India.

The ceiling of 24 per cent for 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. And the ceiling of 10 per cent for NRIs/PIOs can be raised to 24 per cent subject to the approval of the general body of the company passing a resolution to that effect.

The ceiling for FIIs is independent of the ceiling of 10/24 per cent for NRIs/PIOs.

The equity shares and convertible debentures of the companies within the prescribed ceilings are available for purchase under PIS subject to:

* the total purchase of all NRIs/PIOs both, on repatriation and non-repatriation basis, being within an overall ceiling limit of (a) 24 per cent of the company's total paid-up equity capital and (b) 24 per cent of the total paid-up value of each series of convertible debenture; and

* the investment made on repatriation basis by any single NRI/PIO in the equity shares and convertible debentures not exceeding five per cent of the paid-up equity capital of the company or five per cent of the total paid-up value of each series of convertible debentures issued by the company.

The RBI monitors the ceilings on FII/NRI/PIO investments in Indian companies on a daily basis. For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points two percentage points below the actual ceilings. Accordingly, the cut-off limit for companies with 24 per cent ceiling is 22 per cent and for companies with 30 per cent ceiling, is 28 per cent and so on. Similarly, the cut-off limit for public sector banks (including State Bank of India) is 18 per cent.

Once the aggregate net purchases of equity shares of the company by FIIs/NRIs/PIOs reach the cut-off point, which is 2 per cent below the overall limit, the RBI cautions all designated bank branches so as not to purchase any more equity shares of the respective company on behalf of FIIs/NRIs/PIOs without its prior approval. The link offices are then required to intimate the RBI about the total number and value of equity shares/convertible debentures of the company they propose to buy on behalf of FIIs/NRIs/PIOs.

The current list of companies allowed to attract investments from FIIs/NRIs/PIOs with their respective ceilings is:

List of companies which have raised the ceiling from 10 per cent in respect of NRIs investments under PIS

Up to 24 per cent

Alembic Chemical Works Co Ltd  
Amar Investments Ltd, Calcutta
Anglo- India Jute Mills Co Ltd 
Arvind Mills, Ahmedabad.  
Ashima Syntex Ltd, Ahmedabad.  
Ashoka Viniyoga Ltd.  
Bharat Nidhi Ltd.  
BLB Shares & Financial Services Ltd  
BPL Ltd.  
Burr Brown (India) Ltd  
Camac Commercial Company Ltd.  
Ceenik Exports (India) Ltd.  
Cifco Finance Ltd., Mumbai.  
Classic Financial Services & Enterprises Ltd, Calcutta.  
CPPL Ltd, (Reliance Ind. Infrastructure Ltd) Mumbai.  
Crest Communication Ltd.  
CRISIL  
DCM Ltd.  
DCM Shriram Consolidated Ltd.  
Dharani Sugars & Chemicals Ltd  
Dolphin Offshore Enterprises ( I ) Ltd.  
Emco Ltd.  
Essar Oil Ltd.  
Essar Shipping Ltd, B'lore  
Essar Steel Ltd.  
Eveready Industries India Ltd.  
Fabworth (I) Ltd.  
Federal Bank Ltd.  
Ferro Alloys Corporation Ltd., Tumsar.  
Gammon India Ltd
Grasim Industries Ltd.  
GTL Ltd.(formerly Global Tele-Systems Ltd.)  
GTL Infrastructure Ltd  
Hamco Mining & Smelting Ltd.  
HCL Infosystems Ltd.  
HEG Ltd  
Hindustan Development Corp. Ltd, Calcutta.  
Hindustan Nitroproducts (Gujarat) Ltd.  
Hindustan Transmission Products Ltd., Mumbai  
HMG Industries Ltd., Mumbai.
Housing Development and Infrastructure Limited 
Indiabulls Real Estate Ltd.  
India bulls Securities Ltd.  
Indiabulls Financial Services Ltd  
Indiabulls Power Limited (formerly Sophia Power Company Limited) 
Igarashi Motors India Ltd 
IVP Ltd  
Jagatjit Industries Ltd,  
Jai Parabolic Springs Ltd.
Jaysynth Dyechem Ltd.  
Jindal Strips Ltd.  
Jindal Iron & Steel Co. Ltd.  
Jindal Saw Limited (formerly Saw Pipes Limited) 
JJ Spectrum Silk Ltd.  
Kartjikeya Paper & Boards Ltd.  
K Sera Sera Productions Ltd  
Lakhani India Ltd.  
M.P. Agro Fertilisers Ltd., Bhopal.  
Macleod Russel (I) Ltd.
Matsushita Television and Audio India Ltd.  
Max India Ltd  
Mazda Enterprises Ltd., Mumbai.  
Media Video Ltd.  
Monnet Ispat & Energy Limited  
Multimetals Ltd, Mumbai  
Neha International Limited. 
National Steel Industries Ltd.  
Nicholas Laboratories India Ltd., Mumbai.  
Networth Stock Broking Limited  
Nava Bharat Ventures Limited 
O.P. Electronics Ltd., Mumbai.  
Oriental Housing Development Finance Corp. Ltd.  
Pabacea Biotec Ltd  
Padmini Technologies Ltd.  
Pearl Polymers Ltd., New Delhi.  
Piramal Healthcare Ltd.  
PNB Finance & Industries Ltd  
Rajath Leasing & Finance Ltd. 
Rajesh Exports Limited  
Rama Petrochemicals Ltd.  
Rama Phosphates Ltd.  
Reliance Industries Ltd., Mumbai.  
Rishra Investment Ltd., Calcutta  
Rossell Industries Ltd., Calcutta.  
Sahu Properties Ltd  
Sanghvi Movers Ltd  
Saurashtra Paper & Board Mills Ltd. 
Sayaji Hotel Ltd.  
SB & T International Ltd  
Sharyans Resources Ltd.  
Shanti Gears Ltd.  
Shibir India Ltd, Calcutta  
Shrenuj & Company Ltd  
Shriram Industries Enterprises Ltd., N. Delhi.  
Silverline Industries Ltd. 
Sonata Software Ltd.  
SRF Ltd.  
Sterling Lease Finance Ltd, Mumbai  
Sujana Metal Products Ltd  
Svam Software Ltd.  
Synthetics and Chemicals Ltd., Mumbai.  
Shrenuj & Company Limited  
The Champdany Industries Ltd, Calcutta 
The Dhanalakshmi Bank Limited
The Dharamsi Morarji Chemical Co Ltd   
The Investment Trust of India Ltd 
The Morarjee Goculdas Spinning & Weaving Co Ltd, Mumbai  
Tolani Bulk Carrier Ltd  
Unitech Limited  
Uniworth International Ltd  
Vaibhav Gems Ltd  
Valecha Engineering Ltd  
VisualSoft Technologies Ltd  
Weltermann International Ltd  
Woolworth (India) Ltd 
Yes Bank Ltd
Zora Pharma Ltd 

Up to 17 per cent

Garware Shipping Corporation Ltd.

Up to 30 per cent

Asian Paints (India) Ltd  
Capital Trust Ltd  
Container Corporation of India  
Divi's Laboratories Ltd 
Ferro Alloys Corporation Ltd  
Garware Polyester Ltd  
GIVO Ltd (formerly KB & T Ltd)  
Infotech Enterprises Ltd  
Mahindra Gesco Developers Ltd  
Orchid Chemicals and Pharmaceuticals Ltd  
Penta Soft Tec(Pentafour Communications Ltd)  
Polyplex Corporation Ltd  
Ranbaxy Laboratories Ltd  
Shasun Chemicals Ltd  
Sonata Software Ltd  
The Paper Products Ltd  
Vikas WSP Ltd  

Up to 40 per cent

Adlabs Films Ltd 
Aftek Infosys Ltd.  
Balaji Telefilms Ltd.  
Bharat Forge Ltd  
Burr Brown (India )Ltd  
Cipla Ltd.  
Elbee Services Ltd  
Glenmark Pharmaceuticals Ltd  
Gujarat Ambuja Cements Ltd 
HEG Ltd  
Hero Honda Motors Ltd  
Jindal Steel & Power Ltd 
Jyoti Structures Ltd  
Maars Software International Ltd  
Max India Ltd  
Mount Everest Mineral Water Ltd  
Padmini Technologies Ltd.  
Rajasthan Spinning & Weaving Mills Ltd  
Rico Auto Industries Ltd.  
Shanti Gears Ltd.  
Silverline Technologies Ltd.  
Suven Life Sciences Ltd.  
The India Cements Ltd.  
The Indian Hotels Company Ltd  
Thiru Arooran Sugars Ltd.  
UTV Software Communications Ltd 
Visual Soft Technologies Ltd.  
Ways India Ltd.  
Welspun India Ltd  
Zicom Electronic Security Systems Ltd  

Up to 49 per cent

Alok Industries  
Auribindo Pharma Ltd.  
Arvind Mills Ltd  
Balakrishna Industries Ltd 
Blue Dart Express Ltd  
Core Projects & Tech Ltd  
CRISIL  
Digital GlobalSoft Ltd.  
Dr Reddy's Laboratories Ltd. 
D S Kulkarni Developers Ltd. 
Federal Bank Ltd.  
Financial Technologies (I) Ltd  
HDFC Bank Ltd  
Himachal Futuristic Communications Ltd.  
Hindustan Lever Ltd.  
Hughes Software Ltd.  
ICICI Bank Ltd.  
Ind-Swift Laboratories Ltd.  
Infrastructure Development Finance Co Ltd  
Jain Irrigation Systems Ltd. 
Karnataka Bank Ltd.  
LIC Housing Finance Ltd.  
Marksans Pharma Ltd.  
Mahindra & Mahindra Ltd.  
Mastek Ltd  
Max India Ltd  
McDowell & Co Ltd  
NIIT Ltd.  
NIIT Technologies Ltd.  
Panacea Biotec Ltd. 
Reliance Capital Ltd.  
Reliance Energy Ltd.  
Reliance Industries Ltd.  
Reliance Petroleum Ltd.  
SB & T International Ltd.  
Sadbhav Engineering Limited 
Sintex Industries Ltd.  
S Kumars Nationwide Ltd  
Soffia Software Ltd  
Strides Arcolabs Ltd  
Sun Pharmaceutical Industries Ltd.  
Swaraj Mazda Ltd  
The South Indian Bank Ltd  
SPANCO Limited
United Breweries Ltd  
United Phosphorus Ltd  
UTI Bank Ltd.  
Vimta Labs Ltd.  
Wockhardt Ltd.  
Yes Bank Ltd.  
Zeefilms Ltd. 

Up to limits fixed by the companies

Amtek Auto Ltd (74 per cent)
Advanta India Limited (49 per cent)  
Amtek India Ltd (74 per cent)  
Ahmednagar Forgings Ltd (74 per cent)  
Anant Raj Industries Ltd (40 per cent)  
ANG Auto Ltd (49 per cent)  
Apollo Hospitals (74 per cent)  
Aptech Ltd (74 per cent)  
Arshiya International Limited (49 per cent) 
Ansal Properties Infrastructure Limited (49 per cent) 
Bhagwati Banquets and Hotels Limited (49 per cent)  
Bombay Rayon Fashions Ltd (26 per cent)  
Bajaj Auto Finance Ltd (30 per cent)  
Bajaj Hindusthan Limited (74 per cent)  
Balrampur Chini Mills Ltd (60 per cent)  
Birla Power Solutions Ltd (74 per cent)  
Core Projects and Technologies Ltd (74 per cent)  
Cranes Software International Limited (60 per cent) 
Crest Communication Ltd (50 per cent)  
CESC Ltd (49 per cent) 
CREW BOS Products Ltd (49 per cent) 
DCM Ltd  (49 per cent)  
Development Credit Bank Ltd (49 per cent)  
Dagger-Forst Tools Ltd (74 per cent)  
Dewan Housing Finance Corporation Limited (40 per cent) 
Emco Ltd (49 per cent)  
Escorts Ltd (49 per cent)  
Era Construction (India) Ltd (40 per cent)  
Fedders Lloyd Corporation Limited (74 per cent) 
Ganesh Housing Corporation Ltd (49 per cent)
(formerly Ganesh Housing Finance Corporation Ltd)  
Gammon India Ltd (49 per cent)  
Garware Offshore Services Ltd (60 per cent)  
Godrej Consumer Products Ltd (35 per cent)  
Great Offshore Limited (49 per cent) 
GTL Ltd (74 per cent)  
GTL Infrastructure Ltd (74 per cent)  
Housing Development Finance Corporation Ltd (74 per cent)  
HTMT Global Solutions Ltd (74 per cent)  
Hindustan Construction Co Limited (49 per cent)  
Hindalco Industries Limited (40 per cent) 
Igarashi Motors India Ltd (40 per cent)  
IL & FS Investment Managers Ltd (74 per cent)  
ICSA (India) Ltd (49 per cent)  
I-Flex Solutions Ltd (60 per cent)  
India Nivesh Limited (49 per cent)  
Infrastructure Development Finance Company Limited (74 per cent)  
Info Edge (India) Ltd (40 per cent)  
International Conveyor Limited (74 per cent) 
IOL Broadband Ltd (49 per cent)
Jai Corp Ltd (49 per cent)
Jindal Saw Limited (formerly Saw Pipes Limited )  (49 per cent)
Jaisal Securities Limited  (50 per cent)
Jaiprakash Associates Ltd (45 perr cent)
JSW Steel Limited (49 per cent) 
Jupiter Bioscience Ltd (70 per cent)  
Kamdhenu Ispat Ltd (49 per cent)  
Karuturi Networks limited (74 per cent)  
KEI Industries Ltd (49 per cent)  
Kotak Mahindra Bank Ltd (33 per cent)  
Laxmi Energy and Foods Ltd (Lakshmi Overseas Industries Ltd) (49 per cent)  
Lloyd Electric and Engineering Ltd (74 per cent)  
Logix Microsystems Ltd (74 per cent)  
Micro Technologies (India) Limited (49 per cent) 
Maharashtra Seamless Limited (40 per cent)  
Mahindra & Mahindra Financial Services Ltd (35 per cent)  
McDowell Holdings Ltd (49 per cent)  
Mercator Lines Ltd (70 per cent)  
Monnet Ispat and Energy Limited (40 per cent)  
Moser Baer India Ltd (74 per cent)  
MARG Limited (40 per cent) 
McLeod Russel India Limited (40 per cent) 
Neha International Limited (49 per cent) 
Nagarjuna Construction Company Ltd (74 per cent) 
Nava Bharat Ventures Limited (40 per cent) 
NITCO Tiles Ltd (49 per cent)
Northgate Technologies Ltd (74 per cent)  
Om Metals Infra projects Ltd.(49 per cent)  
Opto Circuits (India) Ltd (40 per cent)  
Paramount Communications Ltd (39 per cent)  
Patni computers Ltd (74 per cent) 
Pioneer Investcorp Limited (40 per cent) 
The Phoenix Mills Limited (49 per cent)  
Prajay Engineers Syndicate Ltd (74 per cent)  
Pritish Nandy Communications Ltd (60 per cent) 
Provogue (India) Ltd (49 per cent)  
Piramal Healthcare Limited (49 per cent) 
PTC India Ltd (40 per cent)  
Punjab Tractors Ltd (64 per cent)  
PVR Ltd (50 per cent)  
Pyramid Saimira Theatre Ltd (40 per cent)
Prime Securities Limited (74 per cent)  
Parekh Aluminex limited (74 per cent)  
Precoated Steels Limited (49 per cent) 
Peninsula Land Limited (40 per cent) 
Parsvnath Developers Limited (40 per cent) 
Rajesh Exports Ltd (49 per cent)
Rolta India Ltd (75 per cent) 
Sakthi Sugars Ltd (50 per cent)  
Sanghvi Movers Ltd (35 per cent)  
Satnam Overseas Ltd (51 per cent)  
Satyam Computer Services Ltd (60 per cent)  
Shree Renuka Sugars Ltd (49 per cent) 
Sical Logistics Ltd (49 per cent) 
Sintex Industries Ltd (74 per cent) 
Srei Infrastructure Finance Ltd (64 per cent)  
Subex Systems Ltd (74 per cent)  
Sun Pharma Advance Research Company Ltd (49 per cent)  
SSI Ltd (74 per cent)  
SESA GOA Limited (45 per cent)  
Soma Textiles and Industries Ltd (74 per cent)  
Suzlon Energy Limited (49 per cent)   
Tata Motors Ltd (35 per cent)  
Tata Tea Ltd (35 per cent)  
The Tata Power Company Ltd (35 per cent)  
The Jammu & Kashmir Bank Ltd (46.85 per cent)  
Tanla Solutions Ltd (49 per cent)  
Temptation Foods Ltd (74 per cent)  
Tourism Finance Corporation of India Ltd (49 per cent)  
Tulip IT Services Ltd (40 per cent)  
Unichem Laboratories Ltd (39 per cebnt)  
United Breweries (Holdings) Limited (26 per cent) 
United Spirits Limited (59 per cent)
Vaibhav Gems Ltd (60 per cent) 
Vakrangee Softwares Ltd (49 per cent)  
Venus Remedies Limited (49 per cent) 
Voltas Limited (30 per cent)  
Welspun Gujarat Stahl Rohren Limited (49 per cent)  
Zicom Electronic Security System Ltd (74 per cent) 

Up to sectoral cap

AZTEC Software and Technology Services Ltd  (100 per cent)
Dynamatic Technologies Limited (100 per cent) 
Educomp Solutions Limited (100 per cent)  
Gateway Distriparks Ltd (100 per cent) 
Geodesic Information Systems Ltd  (100 per cent)  
Geometric Software Solutions Ltd (100 per cent)  
Gujarat NRE Coke Limited (74 per cent) 
HCL Infosystems Ltd (100 per cent) 
Hexaware Technologies Ltd (100 per cent) 
Housing Development and Infrastructure Limited (100 per cent)
IFCI Limited (74 per cent)  
Indiabulls Real Estate Limited (100 per cent)  
Indiabulls Financial Services Ltd (100 per cent)  
Indiabulls Securities Limited (100 per cent) 
Indiabulls Power Limited (100 per cent)
(formerly Sophia Power Company Limited) 
Infotech Enterprises Limited (100 per cent) 
Infosys Technologies Ltd (100 per cent) 
IVRCL Infrastructures and Projects Ltd (100 per cent)  
India Infoline Ltd (100 per cent) 
Mascon Global Ltd (100 per cent) 
Mphasis BFL Ltd (100 per cent)  
Orbit Corporation Limited (100 per cent)  
Pentamedia Graphics Ltd (100 per cent)  
Pentasoft Technologies Ltd (100 per cent)  
Prajay Engineers Syndicate Limited (100 per cent)  
Punj Lioyd Limited (100 per cent)  
Reliance Communications Ltd (74 per cent)  
Sujana Metal Products Ltd (100 per cent) 
Sujana Towers Limited (100 per cent)  
Sujana Universal Industries Ltd (100 per cent)  
Shrenuj and Company Limited  (100 per cent)  
Unitech Limited (100 per cent)
Print medai companies in which FDI / FII investment is allowed
Jagran Prakashan  (26 per cent)  
Deccan Chronicle Holdings Ltd  (24 per cent -FIIs up to 14 per cent)  
Network 18 Fincap Ltd  (26 per cent - FIIs up to 13 per cent)  
Companies in which overall FII ceiling has reached

Up to 24 per cent

Pantaloon Retail (India) Ltd 
Brandhouse Retails Limited

Up to 30 per cent

None

Up to 49 per cent

None

Companies where 22 per cent FII limit has been reached and further purchases will be allowed with prior approval of RBI

Geekay Finance and Services Limited 
Jindal South West Holdings Ltd. 
Heritage Foods (India) Limited 
Tribhuvan Housing Ltd. 
Grasim Industries Limited 
 
Companies where NRI/PIO Investment has already reached 10 per cent and no further purchases can be allowed

Chandraprabhu Housing Ltd  
Coxswain Technology Ltd (Kaveri Biotech Ltd)  
Dev Sugars Ltd  
Dharendra Industries Ltd  
DSQ Biotech Ltd  
Fintech Communications
Global Trust Bank Ltd  
IQMS Software Ltd  
Kakatiya Cement Sugar & Industries Ltd  
Madras Aluminium Co Ltd  
Rama Phosphates Ltd  
SGN Telecom  
SPL Ltd  
Squared Biotech Ltd  
Tai Industries Ltd  

Companies where the NRI investment has reached the trigger point of 8 per cent and further purchases are allowed only with prior permission of RBI

Codura Exports Ltd  
Cosmo Films Ltd 
Dalmia Cement (Bharat) Ltd  
Deccan Cements Ltd  
Garden Silk Mills Ltd 
Geekay Financial Services Ltd  
Nexus Software Ltd
Polyplex Corporation Ltd 
Premier Explosives Ltd

Companies in which the ban limit in respect of maximum permissible foreign holding, including GDR/ADR/FDI/NRI/PIO/FII investment, as stipulated by government has been reached: Network 18 Fincap Ltd

Companies in which the caution limit in respect of maximum permissible foreign holding, including GDR/ADR/FDI/NRI/PIO/FII investments as stipulated by government has reached:

Entertainment Network (I) Ltd
Television Eighteen India Ltd (TV 18) (Direct + indirect holding)
 
Print Media Companies in which the caution limit in respect of maximum permissible foreign holding, including FDI/NRI/PIO/FII investments as stipulated by government has reached:

Jagran Prakashan Pvt Ltd
 
Print media companies in which the ban limit in respect of maximum permissible foreign holding, including FDI/NRI/PIO/FII investments as stipulated by the government has reached:

Mid-Day Multimedia Limited
 
Public sector banks in which 20 per cent limit has been reached and no further investments are permitted:

Bank of Baroda
Union Bank of India

Public sector banks in which 18 per cent caution limit has been reached and further purchases by FIIs/NRIs/PIOs are allowed only with prior permission of RBI:

Indian Overseas Bank
Punjab National Bank
Bank of Baroda
Union Bank of India

Private sector banks in which the caution limit in respect of maximum permissible foreign holding including GDR/ADR/FDI/NRI/PIO/FII Investments as stipulated by the government has reached: ING Vysya Bank Ltd

Private sector banks in which the ban limit in respect of maximum permissible foreign holding, including GDR/ADR/FDI/NRI/PIO/FII investments as stipulated by the government has reached: None

Private sector banks in which the caution limit in respect of FIIs investment has reached: Karur Vysya Bank Ltd

Private sector banks in which the ban limit in respect of FIIs Investment has reached: None