Foreign portfolio investors can buy up to 40% in Maruti Suzuki: RBI
15 Sep 2015
Foreign institutional investors (FIIs), registered foreign portfolios investors (RFPIs) and qualified foreign investors (QFIs) can now invest up to 40 per cent of the paid-up capital of Maruti Suzuki India Limited under the portfolio investment scheme (PIS), Reserve Bank of India (RBI) said in notification issued today.
This is because the foreign shareholding by FIIs / RFPIs in Maruti Suzuki India Limited has gone below the revised threshold limit, RBI said, adding that the restrictions placed on the purchase of shares of the above company now stand withdrawn till such limits are reached.
RBI noted that Maruti Suzuki India Ltd has passed resolutions at its board meeting and a special resolution by the shareholders, agreeing to enhance 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 Regulation, RBI said.
As per data available on BSE, FIIs held 21.75 per cent in Maruti Suzuki as of quarter ended June 2015.
FIIs, NRIs and PIOs (persons of Indian origin) can invest in primary and secondary capital markets in India through PIS.
RBI monitors the ceilings on FII / NRI / PIO investments in Indian companies on a daily basis and has fixed the cut-off points two percentage points lower than the actual ceiling.
Maruti Suzuki shares closed at Rs4,320.15 apiece on BSE flat from BSE flat from previous close on BSE today.
