RBI allowed FIIs to purchase 30% shares in Dabur
The Reserve Bank of India (RBI) allowed Foreign Institutional Investors (FIIs) to purchase shares in Dabur India up to 30% of the firm’s paid up capital.
- FIIs have been allowed to buy more shares in Dabur India as the company has passed a special resolution to increase the limit for purchase of its equity shares and convertible debentures by FIIs.
- As indicated by the data available on the Bombay Stock Exchange (BSE), FIIs held 19.94% shares in Dabur India as of quarter ended December 2013.
Under the Portfolio Investment Scheme (PIS), Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India. They can acquire shares/debentures of Indian companies through the stock exchanges.
Note: The ceilings on FIIs/ NRIs)/ PIOs) investments in Indian companies are monitored by RBI on a daily basis. For effective monitoring of foreign investment ceiling limits, the RBI has fixed cut-off points that are 2% points lower than the actual ceilings.
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Month: Current Affairs - February, 2014