RBI hikes FII investment limit in Tech Mahindra
14 Oct 2013
The Reserve Bank of India on Friday enhanced the limit for foreign institutional investors (FIIs) to purchase shares in Tech Mahindra to 45 per cent of the paid up capital of the company.
"The Reserve Bank of India today notified that Tech Mahindra Ltd has passed resolutions at the Board of Directors' level and a special resolution by the shareholders, agreeing of enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges up to 45 per cent revised from earlier limit of 35 per cent of the paid up capital of the company under Portfolio Investment Scheme,'' the RBI said in a notification.
The portfolio investment scheme allows FIIs, non-resident Indians and persons of Indian origin to invest in the country's primary and secondary capital markets. As on 30 September, FIIs had over 32 per cent stake in the IT solutions company.
Under the scheme, FIIs / NRIs can acquire shares / debentures of Indian companies through the stock exchanges in India.