FIIs now allowed up to 100% investment in Zee Entertainment
03 June 2014
Foreign Institutional Investors (FIIs) are now allowed investment of 100 per cent of the paid up capital in Zee Entertainment Enterprises Ltd, according to a RBI notification, PTI reported.
The earlier investment limit was 49 per cent for FIIs in the company.
'' FIIs can now invest up to 100 per cent (revised from earlier limit 49 per cent) of the paid up capital of Zee Entertainment Enterprises Ltd under the portfolio investment scheme,'' the notification said.
As on March 2014, promoter shareholding in the company stood at 43.07 per cent while FIIs held 47.94 per cent shares, as per BSE data.
According to RBI the decision came after the company passed resolutions at its Board of Directors' level and shareholders agreeing to enhancement of the limit for the purchase of its equity shares and convertible debentures by FIIs.
''The purchases could be made through primary market and through stock exchanges,'' it added.
FIIs, NRIs and PIOs (Persons of Indian Origin) would now be able to invest in primary and secondary capital markets in India through Portfolio Investment Scheme (PIS).
The ceilings on FII/NRI/PIO investments in Indian companies are monitored by the RBI in Indian companies.
The RBI has fixed cut-off points two percentage points lower than the actual ceiling to monitor the limit, lower than the actual ceiling.
Meanwhile, the company informed the BSE that Reserve Bank of India on 2 June, 2014 had issued a press release (Ref no. 2013-14/2340) advising that the Foreign Institutional Investors (FIIs) could now invest upto 100 per cent of paid up capital of the company under Portfolio Investment Scheme.
The communication was based on the proposal approved by the board of directors of the company on 22 May, 2013, and approved through a special resolution at the company's annual general meeting on 25 July, 2013.