The Reserve Bank of India (RBI) allowed IRB Infrastructure Developers and Radico Khaitan to enhance FII investment limit under the Portfolio Investment Scheme.
"IRB Infrastructure Developers and Radico Khaitan have passed resolutions...for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs, through primary market and stock exchanges: up to 49 per cent (IRB Infrastructure Developers) and up to 30 per cent (Radico Khaitan) of the paid up capital of the company under Portfolio Investment Scheme," RBI said in a notification.
Since 49 per cent for IRB Infrastructure Developers and 30 per cent for Radico Khaitan are intermediate ceilings fixed for the FIIs, the RBI will not be monitoring the same and it will be companies responsibility to ensure that the applicable cap is not breached, it added further.
RBI said the approval is given subject to the condition that compliance with FDI policy and FEMA regulations including downstream investment would continue to remain on IRB Infrastructure Developers and Radico Khaitan.
Foreign fund holding limits in Infrastructure Developers, Radico raised
(Reuters) - Foreign institutional investors can buy up to 49 percent shares in Infrastructure Developers Ltd and up to 30 percent in Radico Khaitan Ltd, the Reserve Bank of India said, raising the limits under portfolio investment scheme.
Foreign funds currently hold 22 percent in Infrastructure Developers and 26.6 percent in Radico, data from the Bombay Stock Exchange showed.