Foreign investors can hold 100 per cent stake in Indiabulls Power: RBI
12 Oct 2009
Foreign institutional investors (FIIs) can now purchase up to 100 per cent of the paid-up capital, including equity shares and convertible debentures, of Indiabulls Power Limited (formerly Sophia Power Company Limited), through primary markets and stock exchanges under the portfolio investment scheme (PIS), the Reserve Bank of India (RBI) said in a notification today.
The purchases of equity shares by a single FII/SEBI approved sub-account of a registered FII in the company should, however, not exceed 10 per cent of the paid-up equity capital of the company.
The Reserve Bank has also notified that non-resident Indians (NRIs)/persons of Indian origin (PIOs) can purchase equity shares and convertible debentures up to 24 per cent of its paid-up capital through stock exchanges under the portfolio investment scheme (PIS).
Investments made both on repatriation and non-repatriation basis, by any single NRI/PIO in the equity shares and convertible debentures should not exceed 5 per cent of the paid-up equity capital of the bank or five per cent of total paid-up value of each series of convertible debentures issued by the above company.
The revised FII limit of 100 per cent and NRI limit of 24 per cent would be within the overall 100 per cent FDI limit, applicable to the company.
